Sarb slows rate rises as South African economy falters
The South African Reserve Bank’s monetary policy committee raised its policy rate after a split vote on January 26, but slowed the rate of increase.
Three MPC members backed raising the rate by 25 basis points to 7.25%, slowing a tightening cycle begun in November 2021, while the other two backed a 50bp rise.
The MPC’s statement warned that increasing electricity shortages are likely to seriously reduce South Africa’s GDP growth this year.
The Sarb has raised rates at eight consecutive
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