Sarb’s 50bp hike sends rand to record low

On Thursday, the South African Reserve Bank hiked its repo rate by another 50 basis points , taking the benchmark rate to 8.25% – the steepest level since 2009. The rand hit a new record low of R19.78 against the US dollar just after 9pm SA time, following the Sarb’s announcement earlier in the day. It weakened over 2.7% on the day. Rand to dollar This is the 10th repo rate increase in 18 months and takes the prime lending rate of commercial banks to 11.75%.

The Monetary Policy Committee decided to increase the repurchase rate by 50 basis points to 8.25% per year, with effect from 26 May 2023. #MPCMAY2023 pic.twitter.com/JBILyns6Gh — SA Reserve Bank May 25, 2023 South Africa’s energy crisis, which has worsened this year, is also weighing heavily on the country’s already strained economy, presenting more inflationary risks.

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Sarb’s 50bp hike sends rand to new low[BREAKING] The SAReserveBank has hiked the repo rate by 50 basis points ... move takes commercial banks' prime lending rate to 11.75%. SARBMPCMAY2023 InterestRate
Source: Moneyweb - 🏆 5. / 77 Read more »

More interest rate hike pain on the horizon as inflation sticksAnalysts said SA’s central bank will likely extend its tightening cycle & push rates cuts further into the future amid countrywide power outages & currency weakness, adding to inflationary pressures straining businesses and households. InterestRates
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