With inflation now way above the Reserve Bank's target range of 3% to 6%, another substantial increase is expected in the repo rate.
JOHANNESBURG - With inflation now way above the Reserve Bank's target range of 3% to 6%, another substantial increase is expected in the repo rate.Inflation is interlocked with fuel prices, which determine the cost of certain goods as they need to be transported from factories to retailers.
Stats SA said transport costs increased by a massive 20% in the past reporting period, with fuel prices sky-rocketing. Nedbank economist Isaac Matshego said another repo rate increase was on the way on Thursday to try and stem inflation.He said the bank had no choice: “That will be in response to the higher inflation rate, which is above the 6% level.”
Matshego said the repo rate was expected to continue to rise as the bank tried to get inflation under control.
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