A unanimous decision to hike interest rates by 50 bps by the SA Reserve Bank as the rand remains weak

SOUTH AFRICA - Report 25 May 2023 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—the second of this magnitude after it had slowed its rate of increase to 25 bps in January 2023. 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 7.75% to 8.25%, and the prime lending rate from 11.25% to 11.75%. This brings the total interest rate increases since policy normalization began in November 2021 to 475 basis points.

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