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MPC hikes repo rate by 75 basis points to 7%

South African Reserve Bank Governor Lesetja Kganyago said that the monetary policy committee had mixed views on how much the repo rate should be increased by.

JOHANNESBURG – The repo rate has been increased by 75 basis points to 7%.

Since last November, the MPC has raised interest rates off record lows during the COVID-19 pandemic, with rates now above pre-pandemic levels.

South African Reserve Bank Governor Lesetja Kganyago said that the monetary policy committee had mixed views on how much the repo rate should be increased by.

“Three members of the committee preferred the announced increase. Two members preferred a 50 basis points increase.”

But he said that inflation was a problem and needed to be dealt with.

“The bank’s forecast of headline inflation for this year and next is slightly higher at 6.7% and 5.4% respectively.”

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