The SA Reserve Bank’s monetary policy committee has hiked the repo rate by another 25 basis points to 4.25%. This brings the prime rate to 7.75%.
As expected, the SA Reserve Bank’s monetary policy committee (MPC) has hiked the repo rate by another 25 basis points to 4.25%. This brings the prime rate to 7.75%. Three members of the committee voted for the increase, while two wanted a 50 basis point hike. After the prime rate went from 10% in 2019 to 7% last year, the bank started to hike rates again in November last year, followed by another 25 basis point increase in January. The MPC is moving to hike rates in an effort to subdue inflation, which has been heating up in recent months.
