The South African Reserve Bank’s (Sarb) Monetary Policy Committee (MPC) raised the benchmark repo rate by 25 basis points on Thursday, taking it to 7% from 6.75%.
The decision lifts the prime lending rate to 10.5%.
Read: SA poised for first rate hike since 2023 on Iran war
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The move comes amid growing inflation risks linked to persistently high oil prices and the ongoing conflict in the Middle East, which have driven up fuel costs and heightened concerns about broader price pressures feeding through the economy.
The MPC’s decision aligns with expectations from several economists and market participants who argued that the central bank would act pre-emptively to contain inflation expectations and limit the risk of second-round effects.
Read: Why the Sarb can’t afford to wait
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