MPC hikes repo rate to 6.75% in tight call

South Africa’s central bank increased its benchmark lending rate by 25 basis points to 6.75% on Thursday in a close call, saying while near term inflation was trending lower the longer term outlook remained elevated.

In a poll taken by Reuters last week, 16 of 26 economists said the South African Reserve Bank (Sarb) would keep its repo rate at 6.50% while the rest opted for a 25 basis-point hike.