APA-Pretoria (South Africa) South African Reserve Bank (SARB) governor Lesetja Kganyago says the bank has raised its repurchase rate (repo rate) by 50 basis points to reach 8.25 percent annually from Friday.
Addressing journalists in Pretoria on Thursday, Kganyago said the bank’s monetary policy committee agreed to hike the repo rate to 8.25 percent per year, with the prime rate now set at 11.75 percent.
“At the current repurchase rate level, policy is restrictive, consistent with elevated inflation and risks,” he said.
The policy stance was, therefore, aimed at anchoring inflation expectations more firmly around the mid-point of the target band and to increase confidence of attaining the inflation target sustainably over time, he added.
The SARB has raised the repo rate at least 10 times since November 2021, with Kganyago warning economic and financial conditions are expected to remain volatile for the foreseeable future.
“In this uncertain environment, monetary policy decisions will continue to be data dependent and sensitive to the balance of risks to the outlook,” he said.
NM/jn/APA