Repo rate

Reserve Bank Governor Lesetja Kganyago said that high inflation, persistent load shedding, global geopolitical tensions, as well as elevated global price ...

Three members of the Committee preferred the announced increase. The aim of the policy is to anchor inflation expectations more firmly around the mid-point of the target band and to increase the confidence of attaining the inflation target sustainably over time." The revised repurchase rate is now less accommodative and is more consistent with the current view of risks to inflation.

Thursday's move takes the repo rate to 7.75%, bringing the cumulative increase to 425 bps since it was slashed to 3.5% during the early part of the Covid-19 pandemic in 2020. In January the Bank's monetary policy committee (MPC) slowed the rate at which it ...

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South African Reserve Bank (SARB) Governor Lesetja Kganyago has announced that the repurchase rate (repo rate) has reached 7.75% after the Bank's Monetary ...

As a result of extensive load shedding and logistical constraints, the supply performance of the economy remains severely impaired,” he said. Private sector investment is expected to remain positive, in large part reflecting efforts to overcome constraints in energy and transport supply. For the whole of last year, GDP growth of 2.0% was achieved, compared to the 2.5% previously expected. “The revised repurchase rate is now less accommodative and is more consistent with the current view of risks to inflation. Achieving a prudent public debt level, increasing the supply of energy, moderating administered price inflation and keeping wage growth in line with productivity gains would enhance the effectiveness of monetary policy and its transmission to the broader economy,” Kganyago said. “The South African economy contracted by 1.3% in the fourth quarter of 2022, considerably worse than expected at the time of the January meeting.

Economic reprieve might just be on the cards for South Africans after one last interest rate hike.

Economist have predicted that the interest rate will be hiked by 25 to 50 basis points. Yael Selfin, chief economist at KPMG in the UK, said: “We expect global economic growth to be relatively modest over the next two years, and to stay below its long-term average. There have been many media reports over the past month about consumer goods companies (including food producers) warning of more supply chain price pressure that will need to be passed on to consumers this year.” While interest rates are peaking with an expected final 0.25 percentage point increase later on Thursday (30 March 2023), Lullu Krugel, PwC South Africa chief economist, reckons that the tightening cycle will be over after this week. [inflation](https://www.citizen.co.za/tag/inflation/). [Repo rate likely to increase one more time](https://www.citizen.co.za/business/personal-finance/repo-date-to-increase-one-more-time/)

Governor Lesetja Kganyago underlined the deleterious effect of inflation, which the monetary policy committee has revised higher, on the pockets of the ...

Food price inflation is now expected to be 9.9% in 2023 (up from 7.3%). This is despite the [monetary policy committee](https://mg.co.za/tag/monetary-policy-committee/) (MPC) once again clipping its 2023 growth forecast for the country. The rand has generally weakened over the past year and currency markets are expected to remain volatile, the MPC noted. Data released last week showed that domestic inflation had risen slightly in February, [from 6.9% to 7% year-on-year](https://mg.co.za/business/2023-03-22-dark-days-as-inflation-rises-after-another-jump-in-food-prices/), on the back of higher [food prices](https://mg.co.za/tag/food-prices/). Higher interest rates will throw cold water on the country’s already slow economic growth. [load-shedding](https://mg.co.za/tag/load-shedding/). And if no one does anything about inflation eating their incomes, they are going to be in an even worse position,” he said. Thursday’s increase brings the repo rate to 7.75%. “And that institution in society tasked with protecting those incomes against the ravages of inflation is the central bank and through our policy tools, blunt as they might be.” [Covid-19](https://mg.co.za/tag/covid-19/)’s economic onslaught. [Lesetja Kganyago](https://mg.co.za/tag/lesetja-kganyago/) emphasised the deleterious effect of inflation on the pockets of the most vulnerable.

South African Reserve Bank (SARB) Governor Lesetja Kganyago has announced that the repurchase rate (repo rate) has reached 7.75% after the Bank's Monetary ...

As a result of extensive load shedding and logistical constraints, the supply performance of the economy remains severely impaired,” he said. Private sector investment is expected to remain positive, in large part reflecting efforts to overcome constraints in energy and transport supply. For the whole of last year, GDP growth of 2.0% was achieved, compared to the 2.5% previously expected. “The revised repurchase rate is now less accommodative and is more consistent with the current view of risks to inflation. Achieving a prudent public debt level, increasing the supply of energy, moderating administered price inflation and keeping wage growth in line with productivity gains would enhance the effectiveness of monetary policy and its transmission to the broader economy,” Kganyago said. “The South African economy contracted by 1.3% in the fourth quarter of 2022, considerably worse than expected at the time of the January meeting.

The South African Reserve Bank pulled both triggers on its monetary policy shotgun on Thursday, raising its key repo rate by 50 basis points, ...

Kganyago described the exercise as a “nightmare” and hastened to add that the 0.5% figure was a “guesstimate” for now. But then, this is a central bank that is serious about tackling inflation. One of the difficulties in measuring the impact of the power cuts on inflation also probably relates to how they are kneecapping economic growth, a trend that in turn is a drag on demand and inflationary pressures. Will this mark the end of the hiking cycle? How does one square that with the surging costs of living and doing business? One of the SA Reserve Bank’s concerns is the rand’s exchange rate, and the reaction on that front was immediately favourable. And largely because of them, the SA Reserve Bank cut its economic growth forecast for South Africa to 0.2% from an already meagre 0.3%. “Risks to the inflation outlook … Stubbornly high inflation and the rand’s vulnerability are red flags for a bank with a laser focus on inflation. We estimate that load shedding has added 0.5% to overall inflation.” “Domestic food price inflation surprised higher again in February, and risks of drier weather conditions have increased. the [SA Reserve Bank] very rarely bases any policy decision on past inflation.

Economists are expecting the South African Reserve Bank (SARB) to increase interest rates by 25 basis points at its Monetary Policy Committee meeting on ...

She adds: “It’s still high at 7%, but is expected to fall over in the second half of next year and average four and a half percent. The reason for that was the inflation at 7% in February remains well above the midpoint of the target range of 4.5%. But we do, on a positive side, expect this to be close to the last of the increases and it is possible we have an interest rate decrease by year-end.”

Thursday's 50 basis points hike by the central bank marked to ninth repo rate increase since November 2021.

"If we only knew the top, we would be able to tell you how far we are from the top. [hiked the repo rate by 50 basis points on Thursday](https://ewn.co.za/2023/03/30/repo-rate-hiked-by-50-basis-points-to-7-75), bringing it up to 7.75% and making it the ninth increase since November 2021. Thursday’s 50 basis points hike by the central bank marked to ninth repo rate increase since November 2021.

Credit reporting agency TransUnion said South African consumers were becoming more cautious amid the economic pinch.

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South African Reserve Bank (SARB) Governor Lesetja Kganyago has announced that the repurchase rate (repo rate) has reached 7.75% after the Bank's Monetary ...

Private sector investment is expected to remain positive, in large part reflecting efforts to overcome constraints in energy and transport supply. As a result of extensive load shedding and logistical constraints, the supply performance of the economy remains severely impaired," he said. For the whole of last year, GDP growth of 2.0% was achieved, compared to the 2.5% previously expected. "The revised repurchase rate is now less accommodative and is more consistent with the current view of risks to inflation. Achieving a prudent public debt level, increasing the supply of energy, moderating administered price inflation and keeping wage growth in line with productivity gains would enhance the effectiveness of monetary policy and its transmission to the broader economy," Kganyago said. The aim of policy is to anchor inflation expectations more firmly around the mid-point of the target band, and to increase confidence of attaining the inflation target sustainably over time.

Efficient group economist Dawie Roodt says with the latest increase in the repo rate, the South African Reserve Bank has probably forced the country's ...

That means the Reserve Bank has to increase interest rates." "This is what the Reserve Bank is trying to achieve. I don't think we should blame the Reserve Bank for that.