The Reserve Bank has increased the repurchase rate by 25 basis points (a quarter of a percent) to 7.25% per year, with effect from Thursday.
“Three members of the committee preferred the announced increase and two preferred a 50 basis points increase,” Reserve Bank governor Lesetja Kganyago said.
He said while the South African economy grew by a relatively strong 1.6% in the third quarter of 2022, the expansion was not broad-based. “We forecast no growth in the fourth quarter. For the whole of last year, GDP growth of 2.5% is expected ,” Kganyago said. He said for 2023, and as a result of extensive load-shedding and other logistical constraints, the bank now forecasts GDP growth of only 0.3%.
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