Reserve Bank’s MPC increases interest rates by 75 basis points, taking the repurchase rate to 6.25%

The Reserve Bank’s Monetary Policy Committee has decided to increase interest rates by 75 basis points, in line with market expectations.

This takes the repurchase rate to 6.25% and the banks’ prime lending rate to 9.75%.

The bank has raised the repurchase rate for the sixth successive time since November last year.

VIDEO:  Reserve Bank governor Lesetja Kganyago announces interest rate decision

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Reserve Governor, Lesetja Kganyago says the upside risk to the inflation outlook on the back of rising fuel, food, and energy prices, is among the reasons behind the bank’s latest decision.

“The MPC decided to increase the repurchase rate by 75 basis points to 6,25 % with effect from the 23rd of September. Three members preferred the announced repo rate while two members preferred a 100 basis points increase. The level of the repurchase rate is now prevailing before the levels of that before the pandemic.  The revised repurchase rate path supports the credit demands in the near term while raising rates to levels more consistent with inflation risks,” says Kganyago.

DISCUSSION: Reserve bank hikes repo rate by 75 basis points to 6.25% per year [embedded content]

US Federal Reserve raises interest rates:
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Source: SABC News (