Repo rate rises to 4.75%

• Published date: 19 May 2022
• Publication title: South African Official News

The South African Reserve Bank's Monetary Policy Committee (MPC) has once again increased the repo rate by 50 basis points.

The move, announced by SARB Governor Lesetja Kganyago on Thursday following an MPC meeting on Wednesday, will see the repo rate increase to 4.7% per year. The increase is effective from 20 May 2022.

Addressing the media on Thursday, the Governor said four members of the MPC preferred the announced increase and one member preferred a 25 basis point rise in the repo rate.

This was the third consecutive increment following a two 25 basis points hike in November and in January. At that time, the rise was the first in almost three years following a series of repo rate cuts amid the COVID-19 pandemic.

The bank's forecast of headline inflation for...