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STORY: South Africa held its key interest rate steady on Thursday (September 21).

But policymakers cited continued risks to the inflation outlook.

The central bank kept its main lending rate unchanged at 8.25%.

It is the second meeting in a row that the bank has left its repo rate on hold.

Nearly all analysts polled by Reuters had forecast that the rate would be left unchanged.

The South African Reserve Bank's monetary policy committee has stressed that it wanted to see inflation sustainably around the midpoint of its target range of 3%-6% before considering rate cuts.

Governor Lesetja Kganyago said on Thursday that risks to the inflation outlook were assessed to the upside, with a high risk that food price inflation would pick up later in 2024.

He added that in the absence of sustained increases in energy supply in South Africa, electricity prices continued to present clear inflation risks.

Data showed on Wednesday (September 20) that inflation edged up to 4.8% year-on-year in August from 4.7% in July, remaining well within the central bank's target range.