BREAKING NEWS: The South African Reserve Bank Hikes Interest Rates By a Whopping 50 Basis Points

The monetary policy committee of the South African Reserve Bank has concluded its meeting today where it decided to raise interest rates by a further 50 basis points to take the repo rate to 8.25% which was above market expectations of 8%. 

The rate is hiked in the midst of a cost of living crisis in the country which is being made worse by the rapidly depreciating rand that is adding a cost push effect on the already high inflation which the reserve bank is trying to tame.

It seems as though the rate hikes have had somewhat of a desired effect on the level of inflation which was reported yesterday and came below market expectations although it is still high. It remains to be seen whether the SARB will maintain its hawkish stance or change after the latest rate hike. 

Reserve bank governor Lesetja Kganyago will be speaking later today to provide more clarity on the outlook of the economy and interest rates going forward.