Independent Online

Wednesday, May 25, 2022

Like us on FacebookFollow us on TwitterView weather by locationView market indicators

SARB hikes repo rate for the first time in three years

The SA Reserve Bank (SARB) this week hiked the repo rate by 25 basis points to 3.75%, placing the prime lending rate at 7.25%. Photo: Bongani Shilubane/ African News Agency (ANA)

The SA Reserve Bank (SARB) this week hiked the repo rate by 25 basis points to 3.75%, placing the prime lending rate at 7.25%. Photo: Bongani Shilubane/ African News Agency (ANA)

Published Nov 21, 2021

Share

THE SA Reserve Bank (SARB) this week hiked the repo rate by 25 basis points to 3.75%, placing the prime lending rate at 7.25%. The repo rate hike is the first in nearly three years.

Reserve Bank Governor Lesetja Kganyago said South Africa’s economic outlook was bleak with the July unrest, the pandemic and ongoing energy supply constraints likely to have lasting effects on investor confidence and job creation, impeding recovery in labour-intensive sectors hardest hit by the lockdowns.

Story continues below Advertisement

Reacting to the rate hike chairman of the Seeff Property Group, Samuel Seeff, said the repo rate hike was a shock to the economy, premature and bad news ahead of the festive season.

“The SARB should have waited until next year. We are disappointed at the hawkish stance, especially since inflation has remained flat for the second month. I am of the firm view that the SARB should be taking a more aggressive approach to supporting the economy as central banks have done globally, he said.

[email protected]

BUSINESS REPORT ONLINE

Share