The Reserve Bank has voted to raise the interest rate in its first MPC meeting for the year.
The South African Reserve Bank’s Monetary Policy Committee has voted to hike interest rates by 25 basis points , taking the country’s repurchase rate to 7.25%.The latest rate hike marks the ninth hike in the current cycle, with the total adjustment being 375 basis points since the hike cycle started in November 2021.
Load shedding was flagged as having a massive impact on the economy, with Kganyago noting the Reserve Bank expects the duration, impact and levels of rolling blackouts to be much higher than previously anticipated. Looking at 2022’s results, the bank forecasts no growth in the fourth quarter of 2022. For the whole of last year, GDP growth of 2.5% is expected, up from previous forecasts of 1.8%.
Local electricity price inflation has been revised higher at 12.9% in 2023, 14.5% in 2024, and 10.9% in 2025.
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