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South Africa Raises Rates for First Time Since 2023
The bank warned inflation could average 4.4% in 2026 and said up to three more hikes may follow if risks persist.
- The South African Reserve Bank increased the interest rate by 25 basis points on Friday, marking the first hike since May 2023 and raising the repo rate to 7%.
- Persistent inflation risks driven by the ongoing war in Iran prompted the move, with Governor Lesetja Kganyago stating it is vital to act quickly to maintain the SARB's credibility.
- Inflation is expected to average 4.4% this year, significantly higher than the 3.7% forecast in March, while growth forecasts were lowered to 1.2% for 2026.
- Borrowers face higher monthly repayments following the rate increase; a family with a R1 million home loan and two cars worth R400,000 will pay an additional R432 monthly.
- Up to three more interest rate hikes are foreseen later this year, contingent on the Iran war duration and potential super El Niño risks, as the Reserve Bank reiterates its commitment to the 3% inflation target.
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14 Articles
14 Articles
Monetary authority raised the rate by 0.25 percentage point to 7% per year, in line with market expectations
·Brazil
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MPC hikes repo rate by 25 basis points, with another hike likely in July
By Thebe Mabanga The Reserve Bank Monetary Policy Committee (MPC) hiked the repo rate by 25 basis points to 7% on Thursday, and painted a gloomy picture of the country’s growth and inflation outlook. Announcing the committee’s decision, Reserve Bank governor Lesetja Kganyago said that since the last MPC meeting, hopes for a quick end to the Middle East crisis had faded. This had heightened global uncertainty, with the continued closure of the St…
Coverage Details
Total News Sources14
Leaning Left0Leaning Right1Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
C 75%
R 25%
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