The SARB’s Monetary Policy Committee (MPC) is due to announce its latest interest rate decision on Thursday, with growing expectations of a 25 basis point increase aimed at containing inflation risks linked to the Middle East conflict and rising oil prices.
South Africans are preparing for higher borrowing costs as economists expect the South African Reserve Bank (SARB) to raise interest rates this week. This comes after inflation jumped to 4%, the highest it has been in 19 months.
The SARB’s Monetary Policy Committee (MPC) is due to announce its latest interest rate decision on Thursday, with growing expectations of a 25 basis point increase aimed at containing inflation risks linked to the Middle East conflict and rising oil prices.
If implemented, the repo rate would increase by 25 basis points, pushing the prime lending rate from 10.25% to 10.50%.
The prospect of higher rates comes as many households remain under pressure from rising living costs, sluggish economic growth and unemployment, which officially stands at 32.7%.
