The aim of the policy is to anchor inflation expectations more firmly around the mid-point of the target band and to increase the confidence in attaining the inflation target sustainably over time, said Lesetja Kganyago, governor of the bank.

"Achieving a prudent public debt, increasing the supply of energy, moderating administered price inflation and keeping wage growth in line with productivity gains will enhance the effectiveness of monetary policy and its transmission to the broader economy," he said.

The country’s inflation was expected to remain high, according to Kganyago, adding that the bank’s forecast of headline inflation for this year and next is slightly higher at 6.7 percent and 5.4 percent, respectively.