Repo rate

2022 - 3 - 24

Post cover — Image courtesy of "Moneyweb.co.za"

Sarb increases repo rate to 4.25% (Moneyweb.co.za)

Shying away from an even higher hike in the face of spiralling oil prices amidst the Russia-Ukraine conflict.

The Sarb forecast for global growth in 2022 is revised down to 3.7% #MPCMarch22Headline inflation for 2022 is revised higher to 5.8% (from 4.9%) due to higher food and fuel prices. Global producer price and food price inflation continued to surprise higher in recent months and could do so again, particularly if the war in the Ukraine persists into the growing season. 4.9%), primarily due to the higher food and fuel prices. He said the Sarb’s forecast for headline inflation in 2022 is now revised higher to 5.8% (from Following the conclusion of the bank’s March Monetary Policy Committee (MPC), the committee opted not to go for an even higher repo rate hike, despite pressure from spiralling oil prices in the wake of the Russia-Ukraine conflict.

Sarb hikes the repo rate for a third successive time (Independent Online)

The South African Reserve Bank has increased the repurchase rate (repo rate) for a third successive time by 25 basis points to 4.25 percent as rising global ...

“In the near-term, headline inflation has increased well above the mid-point of the inflation target band, and is forecast to breach the target range in the second quarter,” Kganyago said. “Although we had hoped for a pause by the Bank to provide some reprieve for homeowners and buyers who are facing rising costs, we believe the market is now well aware that the rate is stepping up this year to counter inflation and to normalise it after the dramatic rate cuts in 2020,” Seef said. Core inflation is forecast to increase to 4.2 percent in 2022, up from 3.8 percent, to 5.0 percent in 2023 from 4.4 percent, before easing somewhat to 4.7 percent in 2024 from 4.5 percent. As a result, the bank revised upwards its forecast of headline inflation for this year to 5.8 percent from 4.9 percent previously, primarily due to the higher food and fuel prices Kganyago said the average surveyed expectations of future inflation have increased to 5.1 percent for 2022, up from 4.8 percent forecast in January. He said the risks to the inflation outlook were assessed to the upside, with global producer price and food price inflation threatening to surprise higher if the war in the Ukraine persists into the growing season.

Reserve Bank raises repo rate 25 basis points to 4.25% (Business Day)

Reserve Bank raises repo rate 25 basis points to 4.25%. The Bank cited inflation and the Russian war in Ukraine as the biggest threats. BL Premium. 24 March ...

UPDATED 24 March 2022 - 23:04 24 March 2022 - 15:15 Thuletho Zwane and Lukanyo Mnyanda In a statement after the Bank lifted the repo rate by 25 basis points, governor Lesetja Kganyago said two monetary policy committee (MPC) members voted for a more aggressive stance as policymakers seek to prevent fuel and oil price shocks resulting from Russia’s invasion of Ukraine from entrenching higher inflation expectations...

Reserve Bank hikes repo rate for a third time (Mail and Guardian)

Bank governor Lesetja Kganyago noted that high levels of economic uncertainty persist, as Russia's continues to wage war on Ukraine.

“This is due to a combination of factors, including stronger growth in 2021 and higher commodity export prices. When asked whether he was concerned high interest rates would dampen economic growth, Kganyago said: “Our responsibility as the South African Reserve Bank is to protect the value of the currency in the interest of balanced and sustainable growth. “We do not know what the impact of the war in Russia and the Ukraine is going to be. We do not know what the impact will be on the global supply chains and on commodity prices. “The economic environment is uncertain. Russia is one of the world’s largest oil producers.

A hawkish SA Reserve Bank continues its tightening cycle and ... (Daily Maverick)

The South African Reserve Bank held fast to its tightening cycle this week, raising the repo rate by 0.25% and pushing the prime lending rate up to 7.75%, ...

Looking ahead, core inflation and wage growth are the key indicators the MPC is likely to watch when deciding the pace of further rate hikes,” he warned. “Fuel and food costs are nevertheless expected to significantly rise further during the course of the year. The spike in the cost of living is also widely expected to dent discretionary spending. In addition, consumer and business confidence remain depressed and the labour market is not expected to be very supportive to the recovery. The SA Reserve Bank is taking additional steps to combat domestic inflation and to align with higher rates in developed markets,” he says. Reserve Bank governor Lesetja Kganyago says the Russia-Ukraine war is likely to reduce global economic growth and contribute to higher inflation.

Kganyago: Impact of Russia-Ukraine war on oil prices affected repo ... (Eyewitness News)

He said on Thursday this after announcing that the monetary policy committee had decided to increase the repo rate by 25 basis points.

Economic growth at these rates remains above a low rate of potential growth still constrained by loadshedding and policy uncertainty. GDP growth is forecast to be 1.9% in both 2023 and 2024. pic.twitter.com/nZu0Udt0hq March 24, 2022 He said this on Thursday after announcing that the monetary policy committee had decided to increase the repo rate by 25 basis points to 4.25%. He said on Thursday this after announcing that the monetary policy committee had decided to increase the repo rate by 25 basis points. SA Reserve Bank (@SAReserveBank)SA Reserve Bank (@SAReserveBank) #MPCMarch22The SARBs MPC has decided to increase the repurchase rate by 25 basis points to 4.25% This is effective from 25 March 2022.