SOUTH Africa’s Reserve Bank will raise interest rates for the last time in this cycle by 25 basis points on March 30, in anticipation of slower inflation and a weak economy due to power disruptions, a Reuters poll found on Monday.
A firm majority of 18 out of 20 economists polled on South Africa’s repo rate said it would be hiked by one last time in this cycle to 7.50%. South Africa’s central bank raised its main lending rate by 25 basis points to 7.25% in January.
The other two economists opted for no change.
“The Monetary Policy Committee’s January voting patterns showed that although members remained cognisant of inflationary risks, the South African Reserve Bank has adopted a decidedly pessimistic economic outlook,” said Jee-A van der Linde of Oxford Economics Africa.
“South Africa’s economy is set to cool this year and, together with another 25 bps increase, should help to take the edge off inflation. Policy members
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