South Africa has decided to increase the repurchase rate by 75 basis points, reaching a repo rate of 5.5% annually.
Briefing reporting on Thursday, South African Reserve Bank governor Lesetja Kganyago said three of the five Monetary Policy Committee (MPC) members voted for an increase in the repo rate.
He said achieving “a prudent public debt level, increasing the supply of energy, moderating administered price inflation and keeping wage growth in line with productivity gains would enhance the effectiveness of monetary policy and its transmission to the broader economy.”
According to the apex bank governor, the new repo rate has increased from its previous rate of 4.75% to the current one.
This was the fourth consecutive increment following two 25 basis points hikes in November 2021 and January 2022.
NM/jn/APA