A 50-basis point increase in the repo rate by the South African Reserve Bank

SOUTH AFRICA - Report 19 May 2022 by Iraj Abedian

The South African Reserve Bank (SARB) has once again announced that it is hiking the benchmark interest rate, by 50 basis points – its largest since the beginning of 2016. This was following this week’s conclusion of its Monetary Policy Committee’s (MPC) third meeting of the year. The repo rate therefore went up from 4.25% to 4.75%, and the prime lending rate from 7.75% to 8.25%. This brings the total interest rate increases since policy normalization began in November 2021 to 125 basis points.

Lately it has become less a question of whether the Reserve Bank would be increasing rates, but more about by how much. Thus far in 2022, not only is the country’s inflation rate significantly higher than it was this time in the past year, but the overall trend of policy normalization by central banks globally on account of the surge in inflation rates is also a factor influencing the SA Reserve Bank’s stance on interest rates.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.