SARB hikesc interest rates by 75 basis points.
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The South African Reserve Bank has hiked interest rates by 75 basis points, taking the repo rate to 6.25% per annum – returning to pre-Covid-19 levels.
The decision on rates was not unanimous, with three members voting for the announced 75 basis point hike, while two members preferred a rate hike of 100 basis points.
The hike is the second consecutive upward rate adjustment of 75 basis points. “The level of the repurchase rate is now closer to the level prevailing before the start of the pandemic,” the bank said. Rates are now at the same levels as January 2020, before hard lockdowns hit the economy.
The decision on rates was not unanimous, with three members voting for the announced 75 basis point hike, while two members preferred a rate hike of 100 basis points.
The hike is the second consecutive upward rate adjustment of 75 basis points. “The level of the repurchase rate is now closer to the level prevailing before the start of the pandemic,” the bank said. Rates are now at the same levels as January 2020, before hard lockdowns hit the economy.
