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: