Reserve Bank Governor Lesetja Kganyago. Picture: Gallo Images
The South African Reserve Bank (SARB) has increased the repo rate by another 25 basis points to 4.25%.
This brings the prime rate to 7.75% in South Africa.
The Reserve Bank’s governor, Lesetja Kganyago, announced the decision that was made by the Monetary Policy Committee (MPC) on Thursday.
The repo rate is the rate at which SARB lends money to commercial banks.
The SARB said it was increasing the repo rate in an attempt to keep inflation in check.
This comes on the back of increases in the prices of oil, commodities and food – largely due to the war that broke out after Russia invaded Ukraine.
Thursday’s increase is the third consecutive rate hike by the SARB.
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