The Reserve Bank’s Monetary Policy Committee has decided to hike the repo rate by 25 basis points for the first time since November 2018.
The decision will see the repo rate adjusted to 3.75 percent from tomorrow.
Three members of the MPC were in favour of the hike, while the remaining two preferred rates to remain unchanged.
The Bank warned that the short-term inflation outlook remains on the upside due to higher electricity prices, weaker rand exchange rate and rising oil prices.
Repo rate announcement:
Inflation
South Africa’s annual consumer inflation remained steady in October.
Statistics South Africa data showed the annual consumer inflation at 5%, in line with market expectations.
The main contributors to the annual inflation rate were food, housing and transport.
The consumer price index increased by 0,2% in October, compared to September.
