The Reserve Bank has hiked rates by another 50 basis points meaning that the prime lending rate increases to 11.75%. The hike was above the expected 25 basis points. The decision by the Monetary Policy Committee (MPC) was unanimous. The bank has increased rates by four and three quarters of a percentage point since the beginning of the hiking cycle in November 2021.
The central bank says it expects headline inflation to come in at around 6.2% for this year and 5.1% percent for next year before moderating in 2025 to 4.5%.
Reserve Bank Governor Lesetja Kganyago is announcing the MPC’s decision on the repo rate.