THE South African Reserve Bank’s monetary policy committee has increased the repo rate by another 25 basis points to 4.25%.
This brings the prime rate to 7.75%.
The 25-basis point increase was widely expected by most economists and market commentators.
Following the conclusion of the bank’s March Monetary Policy Committee (MPC), the committee opted not to go for an even higher repo rate hike, despite pressure from spiralling oil prices in the wake of the Russia-Ukraine conflict
“We expect oil prices to average US$103 for 2022, $80 in 2023, $75 in 2024,” said South African Reserve Bank Governor Lesetja Kganyago.
“Economic growth at these rates remains well above a low rate of potential growth still constrained by load-shedding and policy uncertainty. Investment by the government sector has weakened significantly in recent years and that of public corporations is forecast to be very modest. Household spending remains supportive, as a result
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
