The SA Reserve Bank’s monetary policy committee (MPC) on Thursday increased interest rates by 25 basis points, taking the repo rate to 4.25% as predicted by economists.
The central bank’s decision will take the prime rate to 7.75% as it attempts to slow down inflation.
Two members of the MPC, according to Reserve Bank governor Lesetja Kanyago, had voted for the central bank to hike the repo rate by a 50 basis point.
The news comes at a time when many South Africans are grappling with record high fuel prices, taxes and levies, as well as increases in basic household items.
While South Africa’s inflation averaged 4.5% in 2021, it has persistently increased in recent months.
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