Today the Monetary Policy Committee (MPC) of the SA Reserve Bank (SARB), hiked the key repo rate by 25 basis points to 7% per annum.
SARB governor Lesetja Kganyago said three MPC members favoured a 25 basis point increase while three members preferred no change. Ultimately the committee decided on an increase.
“The Committee faced the continuing dilemma of a deteriorating inflation environment and a worsening growth outlook,” Kganyago added.
“The MPC remains sensitive to the possible negative effects of policy tightening on cyclical growth, but will remain focused on its mandate of maintaining price stability.”
