Analysts see point hike from SARB

- Central Banking staff
- 11 Jun 2008

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Ahead of Thursday's rate-setting meeting, observers expect the South African Reserve Bank to increase the cost of borrowing by 100 basis points taking rates to 12.5%.

Last week, Tito Mboweni, the governor of the South African Reserve Bank, said that the central bank's policymakers had discussed a 200 basis-point hike, comments that were met with shock by households and businesses alike.

However, chances of a rate hike of this magnitude appear slim. "Initially, it was difficult to know what to make

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