Kaya 959 Reporter
On Thursday, the South African Reserve Bank (Sarb) increased the repo rate by 50 basis points (bps), the most since 2016.
The hike, which brings the bank’s benchmark rate to 4.75 per cent and commercial banks’ prime lending rate to 8.25 per cent, was fueled by rising global inflation.
Following the conclusion of the bank’s May Monetary Policy Committee (MPC) meeting, SARB Governor Lesetja Kganyago announced the rate hike on Thursday.
#MPCMay22 The SARB's MPC has decided to increase the repurchase rate by 50 basis points to 4.75% per year, with effect from the 20th of May 2022. pic.twitter.com/3EwPylORCH
— SA Reserve Bank (@SAReserveBank) May 19, 2022
He stated four MPC members voted for a 50 basis point increase, while one voted for a 25 basis point increase.
Due to increasing fuel and food prices, the central bank’s prediction for headline inflation has been raised to 5.9% for 2022.