[BREAKING] The SAReserveBank hiked the repo rate by 75bps. Most of Moneyweb's community polled had expected this hike. SARBMPCSEP22 Sarb InterestRate
The Reserve Bank’s Monetary Policy Committee cranked up the benchmark repo rate by 75 basis points to 6.25% on Thursday to rein in consumer inflation which, prior to August, appeared to be hurtling towards 8%. Three MPC members preferred a 75bp increase, while two preferred a 100bp rise. Weighing the threat of higher inflation brought on by higher energy costs against the corrosive effects of load shedding on economic growth, the MPC opted to prioritise the inflation threat.
The latest increase in interest rates returns SA to pre-Covid levels, but this time with galloping inflation and countrywide load shedding. Inflation bottomed at 2.1% in June 2020 due to the sharp decline in oil prices and lowering of interest rates to 3.5%, its lowest in decades. Comments Jacques Celliers, FNB CEO, says, “We are witnessing a concerted effort by the South African Reserve Bank and numerous other central banks around the world to mitigate the effects of higher inflation.
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Reserve Bank cranks up repo rate by 75 basis points[BREAKING] The SAReserveBank hiked the repo rate by 75bps. Most of Moneyweb's community polled had expected this hike. SARBMPCSEP22 Sarb InterestRate
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