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SARB raises interest rates by 50 basis points

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The Reserve Bank’s Monetary Policy Committee has adopted an aggressive rate stance by hiking lending rates by 50 basis points on Thursday.

The decision will take the repo rate at which the Reserve Bank provides short-term money to local banks to 4.75%.

Reserve Bank governor Lesetja Kganyago says that despite the hike – monetary policy in the country remains accommodative. The bank has revised its growth forecast to 1.7% from 2%.

Kganyago says the bank had to act fast due to expectations of higher inflation before it’s too late.

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