THE South African Reserve Bank’s (SARB’s) Monetary Policy Committee has voted to hike rates in South Africa by a further 75 basis points, taking the repo rate to 7.00%. The prime lending rate has now increased to 10.50%.
SARB governor Lesetja Kganyago made the announcement on Thursday (24 November) following the MPC’s final meeting for the year. The level of the repurchase rate is now above the level prevailing before the start of the pandemic.
The vote to hike rates at 75bp was not unanimous, with three members voting for the given hike versus two who preferred a 50bp hike.
The latest rate hike marks the eighth hike in the current cycle, with the total adjustment being 350 basis points since the hike cycle started a year ago in November 2021.
Kganyago said that the hike comes amid high levels of inflation in South Africa and a volatile global economic
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