THE South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) has voted to hike interest rates by 25 basis points (bp), taking the country’s repurchase rate to 7.25%.
The prime lending rate will increase to 10.75%.
The latest rate hike marks the ninth hike in the current cycle, with the total adjustment being 375 basis points since the hike cycle started in November 2021.
The move was broadly in line with market expectations, with analysts and economists anticipating a 25bp or 50bp hike. Most forecast a 50bp hike.
According to Reserve Bank governor Lesetja Kganyago, the vote was not unanimous, with three members voting for a 25bp hike and two preferring a 50bp move.
Load shedding was flagged as having a massive impact on the economy, with Kganyago noting the Reserve Bank expects the duration, impact and levels of rolling blackouts to be much higher than previously anticipated.
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