Sarb hikes rates 25bp, citing persistent global supply shock

The South African Reserve Bank has raised its key policy rate by 25 basis points, to 7.25%. The decision was unanimous, with the Sarb stating that geopolitical events were adding up to a large, negative and persistent global supply shock, creating inflationary pressure.

In the monetary policy statement published on September 23, governor Lesetja Kganyago said “the global economy is not in a healthy space”. He noted the global backdrop of major central banks raising rates, namely the European