Sarb increases repo rate to 4.25%

The repo rate of the South African Reserve Bank (Sarb) will increase to 4.25%, bank governor Lesetja Kganyago announced on Thursday, after raising the rate by 25 basis points.

Following the conclusion of the bank’s March Monetary Policy Committee (MPC), the committee opted not to go for an even higher repo rate hike, despite pressure from spiralling oil prices in the wake of the Russia-Ukraine conflict.

The 25-basis point increase was widely expected by most economists and market commentators.

It will see the prime lending rate of commercial banks increase to 7.75%.