Sarb hikes interest rates for first time in three years
MPC split, though governor says this was more about timing than direction of travel
The South African Reserve Bank raised its policy rate by 25 basis points to 7% on May 28, marking its first rate hike since May 2023.
Governor Lesetja Kganyago opened his statement by saying “hopes for a quick end to the Middle East crisis have faded”. He said South Africa’s growth forecasts for the next two years have been lowered, and the country now faces “a painful combination of higher global uncertainty and reduced disposable income”. He added that recent floods in the country had done
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