Repo rate

Economic and financial conditions are expected to remain more volatile for the foreseeable future, says central bank.

The MPC will seek to look through temporary price shocks and focus on potential second round effects and the risks of de-anchoring inflation expectations.” Russia’s ongoing attack on Ukraine has added to price pressures, with oil shocks and disruption in the supply chain of key products such as wheat. In this uncertain environment, policy decisions will continue to be data dependent and sensitive to the balance of risks to the outlook.

The SA Reserve Bank raised interest rates for a fourth consecutive meeting, as it moves to normalise policy from historical lows in a context in which a ...

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily. The SA Reserve Bank raised interest rates for a fourth consecutive meeting, as it moves to normalise policy from historical lows in a context in which a spike in global and domestic inflation has prompted both developed and developing markets to do the same. Following its three-day meeting, the monetary policy committee (MPC) on Thursday lifted the repo rate by 50 basis points as predicted by 16 of 24 economists surveyed by Reuters...

The Reserve Bank has hiked the repo rate by 50 basis points, the biggest margin in more than five years as inflation sees food and fuel prices pushing ...

Headline inflation of 4.7% is now expected in 2024”. However, curbing rising inflation is crucial to cushion salaries of consumers. The hike comes as consumer price inflation remained unchanged in April at 5.9% according to StatsSA on Wednesday. With the data, experts said headline inflation looked set to touch the upper inflation target band this month, at 6%. They expected inflation to continue rising in June, as new housing inflation data comes through, and food and petrol prices continue to climb. Kganyago also said the bank’s forecast of headline inflation for this year is revised higher to 5.9% from 5.8%, primarily due to the higher food and fuel prices. “We have a responsibility to curb inflation because inflation is eating into the incomes of the working people in SA. We have to live true to our mandate”. The Reserve Bank has hiked the repo rate by 50 basis points, the biggest margin in more than five years as inflation sees food and fuel prices pushing consumer prices to the upper end of its target range.

The South African Reserve Bank has increased the repurchase rate for a fourth successive time by 50 basis points to 4.75 percent as runaway inflation ...

Knowing that more interest rate hikes were forecasted for the year ahead, Goslett said the question of whether to fix the interest rate on a home loan has come up more and more frequently. “This is due to a combination of short-term factors, including the flooding in Kwa-Zulu Natal and the continued electricity supply constraints,” Kganyago added. Kganyago said Russia’s war in the Ukraine was likely to persist for the rest of this year and may have significant further effects on global prices.

The increase was expected by most economists and analysts after inflation for April remained at 5.9%.

Headline inflation of 4.7% is now expected in 2024”. However, curbing rising inflation is crucial to cushion salaries of consumers. The hike comes as consumer price inflation remained unchanged in April at 5.9% according to StatsSA on Wednesday. With the data, experts said headline inflation looked set to touch the upper inflation target band this month, at 6%. They expected inflation to continue rising in June, as new housing inflation data comes through, and food and petrol prices continue to climb. Kganyago also said the bank’s forecast of headline inflation for this year is revised higher to 5.9% from 5.8%, primarily due to the higher food and fuel prices. He said as a result of higher global food prices, local food price inflation had also been revised up and was expected to be 6.6% in 2022, up from 6.1%. “We have a responsibility to curb inflation because inflation is eating into the incomes of the working people in SA. We have to live true to our mandate”.

The South African Reserve Bank's Monetary Policy Committee (MPC) has voted to hike interest rates by 50 basis points, taking the repo rate to 4.75% per ...

This is due to a combination of short-term factors, including the flooding in Kwa-Zulu Natal and the continued electricity supply constraints. Higher diesel and coal prices may result in upward revisions to our electricity price forecast for 2023,” he said. He stressed that global oil prices in particular have been significantly impacted and that they are likely to increase further. Growth in output in the first quarter of this year is expected to be 3.6%, stronger than the 3.2% expected at the time of the March meeting. “Economic and financial conditions are expected to remain more volatile for the foreseeable future. The war has impaired the production and trade of a wide range of energy, food and other commodities and will continue to do so for some time, the governor said.

The South African Reserve Bank's Monetary Policy Committee (MPC) has once again increased the repo rate by 50 basis points.

This is due to a combination of short-term factors, including the flooding in Kwa-Zulu Natal and the continued electricity supply constraints." Headline inflation of 4.7% is now expected in 2024," he said. The increase is effective from 20 May 2022.