Interest rate hike a necessary evil, economist explains

Published on


Add Smile FM on Google

The Reserve Bank has hiked interest rates, in part to help suppress inflation which is expected to, at least, trend higher for the rest of the year. Reserve Bank governor Lesetja Kganyago yesterday announced that the repo rate will be increased by 75 basis points – pushing the interest rate to 9%. Kganyago says increasing oil prices are a major factor.

Meanwhile: Economist Dawie Roodt says the 75 basis points hike is brave and surprising – but essentially it’s the right decision:

Latest articles

Residents urged to save water as Cape Town dams sit at 78,1%

 The City of Cape Town is encouraging residents to continue using water wisely, despite dam levels standing at 78,1%. As of Monday, 3 August 2026,...

Kusile corruption case: Two plead guilty, will testify against former Eskom-execs

 British businessman Michael Lomas and businessman Hudson Kgomoeswana have been convicted after entering guilty pleas in the long-running corruption case linked to Eskom's Kusile...

Madlanga report calls for criminal probes against Sibiya, 3 others

 President Cyril Ramaphosa has noted the recommendations and referrals contained in the second interim report of the Madlanga Commission of Inquiry, which include calls...