SARB expected to increase interest rates

The South African Reserve Bank is expected to raise interest rates even further this Thursday afternoon for the last time this year.

The Bank’s Monetary Policy Committee (MPC) is expected to announce its decision on the interest rates later this afternoon.

The meeting comes on the back of an increase in consumer price inflation, which rose slightly last month to 7.6 % from 7.5 % in September. 

[embedded content]

Food and transport prices were the main drivers, with food having increased by 12.3 % and transport by 23.3 % over the year.

UKZN School of Economics Senior Lecturer, Dr. Sanele Gumede, outlines some factors contributing to the interest rates hikes: “We’ve seen an increase in food prices, if you compare year on year the price of bread this year is not the same as last year that’s inflation. Now how they regulate economies because they target the banks between 3 and 6 percent as soon as you reach 6 percent you are over and in any case, they try and make sure that they take money away from our pockets.”

Share article

Source: SABC News (