THE South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) has elected to hike South Africa’s interest rates by another 50 basis points. The decision was unanimous.
This takes the repo rate up to 8.25%, with the prime lending rate now at 11.75%. It marks the tenth consecutive interest rate hike since the central bank started the hike cycle in November 2021.
It has hiked rates by a total of 475 basis points since then.
The move was broadly in line with market expectations, with most analysts and economists anticipating the move at 50 basis points.
According to Reserve Bank governor Lesetja Kganyago, the move to hike rates comes amid persistently high consumer price inflation and a sluggish economy – exacerbated by severe load shedding.
Risks to inflation are viewed to the upside, and the headline rate is expected to stick outside the target range until the third quarter of
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
