EXCERPTS-South African central bank comments on rate decision

JOHANNESBURG, Jan 21 (Reuters) - Below are some quotes from South African Reserve Bank Governor Lesetja Kganyago on Thursday as he announced the central bank's latest decision on its benchmark repo rate, leaving it at 3.5%.

INFLATION

"The overall risks to the inflation outlook appear to be balanced in the near and medium term. Local food price inflation is higher but expected to remain broadly contained. The Committee additionally notes the significant but likely temporary reduction in medical insurance price inflation this year."

"Given low pass-through, risks to inflation from currency depreciation are expected to stay muted. However, additional exchange rate pressures could result from fiscal risks. While there are no demand side pressures evident, electricity and other administered prices remain serious concerns."

GROWTH

"In the third quarter of 2020, the South African economy grew by 66.1% quarter on quarter, seasonally adjusted and annualised, compared to the Bank's expected 50.3% growth. The growth rate for the full year is now expected to be -7.1%, compared to the contraction of 8.0% expected at the time of the November meeting."

"However, our projection for the 4th quarter of 2020 is expected to be lower than previously forecast. And while lockdown restrictions currently in place are considerably less restrictive than in 2020, we expect growth in the first quarter of 2021 to remain muted."

DECISION

"The Committee notes that the slow economic recovery will help keep inflation below the midpoint of the target range for this year and next. Unless risks outlined earlier materialise, inflation is expected to be well contained in 2021, before rising to around the midpoint in 2022 and 2023."

"Against this backdrop, the MPC decided to keep rates unchanged at 3.5% per annum." (Reporting by Olivia Kumwenda-Mtambo and Alexander Winning Editing by Gareth Jones)