Johannesburg – The South African Reserve Bank Governor Lesetja Kganyago has announced that the Monetary Policy Committee (MPC) has decided to increase the repo rate to 4%, an increment of 25 basis points.
The MPC raised the repurchase November rate by 25 basis points to 3.75% when they last met in November last year.
“Over the past year, rising vaccination rates have sustained confidence and the global economic recovery, despite the rapid spread of the Omicron virus in recent months,’ Kganyago said.
The governor said the committee will gradually increase the rate to maintain inflation under control.
This means that the prime lending rate in SA is now at 7.5%.
MPC DECISION: #MPCJAN22 pic.twitter.com/sRwwvoXqA1
— SA Reserve Bank (@SAReserveBank) January 27, 2022
With the repo rate being increased, inflation becomes a worry in the country
The country’s domestic economy grew by 4.2% in the first quarter of 2021 and 4.7% in the second quarter of 2021 and is expected to continue increasing this year.
MPC STATEMENT: Over the past year, rising vaccination rates have sustained confidence and the global economic recovery, despite the rapid spread of the Omicron virus in recent months. #MPCJan22 @KganyagoLesetja
— SA Reserve Bank (@SAReserveBank) January 27, 2022
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