Reserve Bank raises repo rate 25 basis points to 4.25%, citing inflation and war as the biggest threats.
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The South African Reserve Bank’s Monetary Policy Committee (MPC) has decided to raise the repo rate to 4.25% per annum.
Reserve Bank governor Lesetja Kganyago said in a statement on Thursday afternoon (24 March), that the rate hike comes against a backdrop of higher global and local inflation.
Three members of the committee preferred the announced increase and two members preferred a 50 basis point rise in the repo rate.
“The implied policy rate path of the Quarterly Projection Model (QPM), given the inflation forecast, indicates gradual normalisation through to 2024. As usual, the repo rate projection from the QPM remains a broad policy guide, changing from meeting to meeting in response to new data and risks.
Reserve Bank governor Lesetja Kganyago said in a statement on Thursday afternoon (24 March), that the rate hike comes against a backdrop of higher global and local inflation.
Three members of the committee preferred the announced increase and two members preferred a 50 basis point rise in the repo rate.
“The implied policy rate path of the Quarterly Projection Model (QPM), given the inflation forecast, indicates gradual normalisation through to 2024. As usual, the repo rate projection from the QPM remains a broad policy guide, changing from meeting to meeting in response to new data and risks.
