The first of up to six interest rate hikes for 2022 has been announced.

The Reserve Bank yesterday afternoon raised the interest rate by 25 basis points.

This takes the repo rate to 4% and the prime interest rate to 7.5%.

Reserve Bank governor Lesetja Kganyago says the bank’s quarterly forecasting model points to further increases in 2022, 2023 and 2024. He says concerns about rising inflation, especially food and fuel, necessitated the decision.

Concerns about electricity price inflation is also a concern.

Kganyago says they expect SA’s GDP growth rate for 2021 to come in lower at 4.8%, compared to a forecast of 5.2% as its last MPC meeting in November.

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— SA Reserve Bank (@SAReserveBank) January 27, 2022