Sarb Governor Lesetja Kganyago announced the Monetary Policy Committee’s (MPC) latest decision on Thursday, saying the repo rate would increase to 7%, pushing the prime lending rate to 10.5%.
The South African Reserve Bank (Sarb) has raised interest rates by 25 basis points, citing escalating global inflation risks linked to the ongoing Middle East crisis and mounting pressure on domestic fuel and food prices.
Announcing the Monetary Policy Committee’s (MPC) latest decision on Thursday, Sarb Governor Lesetja Kganyago said the repo rate would increase to 7%, pushing the prime lending rate to 10.5%.
Kganyago said the decision was driven by rising inflationary risks following continued disruptions in global oil markets caused by the prolonged closure of the Strait of Hormuz.
“Since our last meeting, hopes for a quick end to the Middle East crisis have faded. The Strait of Hormuz is still largely closed. Oil prices have fluctuated around 100 dollars per barrel,” Kganyago said.
