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Interest Rate

latest news & developments
Reserve Bank governor Lesetja Kganyago announced on Thursday that the monetary policy committee had increased the repo rate by 25 basis points to 7%, effective from 29 May.
BUSINESS

Reserve Bank cuts rate by 25 basis points to 7.25%

The announcement comes as the bank foresees lower global interest rates and a weaker outlook for the local economy

  • Aarti Bhana
3 min read
Consumer inflation edged higher to April to 2.8% year-on-year from 2.7% in March, driven mainly by the housing and utilities as well as the alcoholic beverages and tobacco categories, Statistics South Africa said on Wednesday.
COVID 19

VAT hike: A tough choice or a risk to economic recovery?

There are alternatives which don’t add to the financial burden of citizens and which are better for fiscal sustainability

  • Noluthando Qwelani
5 min read
South African Reserve Bank governor Lesetja Kganyago. Photo: Waldo Swiegers/Bloomberg/Getty Images
BUSINESS

Reserve Bank holds interest rate at 7.5%

The monetary policy committee said it remains vigilant amid risks to inflation outlook on the global and domestic front

  • Aarti Bhana
3 min read
Consumer inflation edged higher to April to 2.8% year-on-year from 2.7% in March, driven mainly by the housing and utilities as well as the alcoholic beverages and tobacco categories, Statistics South Africa said on Wednesday.
BER INFLATION FORECAST

Inflation slows sharply in October, paving the way for another interest rate cut

Data from Statistics South Africa showed that the CPI annual rate braked to 2.8% – a four-year low

  • Anathi Madubela
3 min read
Reserve Bank governor Lesetja Kganyago
ARTICLE

Reserve Bank likely to keep interest rates unchanged next week

Consumer inflation has eased but is still not comfortably within the central bank’s target of 3% to 6% This content is restricted to registered users and subscribers. Get Your…

  • Aarti Bhana
1 min read
The Reserve Bank has maintained the repo — at which it lends to commercial banks — steady at 8.25% for five consecutive meetings, since hiking it by 50 basis points in May 2023.
CONSUMER INFLATION INDEX

Consumer inflation eases in April, but interest rate cut still unlikely this month

The central bank has maintained the key repo rate at 8.25% since hiking it by 50 basis points in May 2023 This content is restricted to registered users and subscribers. Get Your…

  • Aarti Bhana
1 min read
Small food businesses and inflation
BUSINESS

Inflation edges up in February, driven by food and transport, among other costs

The consumer price index rose 5.6% year-on-year in February and was at 1.0% month-on-month

  • Aarti Bhana
2 min read
At a minimum, mining organisations must develop context-specific cybersecurity strategies tailored to their unique operational needs. (Photo supplied)
CONSTRUCTION

Blackouts add to risk of recession

Other factors are inflation and interest rate hikes while load-shedding has affected key sectors

  • Anathi Madubela
5 min read
Annual consumer inflation was unchanged at 3.2% in February at 3.2%, with increases registered in housing and utilities, food and alcoholic beverages and restaurants and accommodation offset by decreases in the services sector, Statistics South Africa said on Wednesday. (Guillem Sartorio/Bloomberg via Getty Images)
ECONOMIST

Higher electricity tariffs stand in the way of inflation normalising in 2023

Reserve Bank’s inflation forecast likely to be pushed up, with Eskom set to increase the price of electricity by 18.65% from April

  • Anathi Madubela
5 min read
Reserve Bank governor Lesetja Kganyago
FEDERAL OPEN MARKET COMMITTEE

Another 75 basis point hike as Reserve Bank seeks to tame ‘inflation monster’

Consumer inflation hit 7.6% year-on-year in October, bucking the downward trend that had been anticipated after the July ‘peak’

  • Sarah Smit
5 min read
South African Reserve Bank governor Lesetja Kganyago. Photo: Waldo Swiegers/Bloomberg/Getty Images
EUROPEAN CENTRAL BANK

Reserve Bank greenlights sharpest repo rate hike in almost two decades

In a split decision, the bank’s monetary policy committee increased the repo rate, which affects the cost of borrowing, by 75 basis points

  • Sarah Smit
4 min read
The informal sector will be hard hit by the fuel price rise and inflation and the taxi industry (below) will probably increase its fares, hurting commuters. Photo: David Harrison & Paul Botes
ASIYE ETAFULENI

Cost of living: Informal sector pushed to ‘desperate situation’

The ability of informal traders to absorb any more shocks — suchas the fuel price hike — has reached zero

  • Greg Ardé
8 min read
Reserve Bank governor Lesetja Kganyago has underlined on a number of occasions that high inflation is harmful to consumers, particularly the poor. Photo: Gem Atkinson/Bloomberg via Getty Images
FEDERAL RESERVE

EXPLAINER: Why are central banks worried about inflation?

High prices have been more stubborn than previously expected, forcing monetary policymakers to react

  • Sarah Smit
4 min read
The Reserve Bank has maintained the repo — at which it lends to commercial banks — steady at 8.25% for five consecutive meetings, since hiking it by 50 basis points in May 2023.
ANNABEL BISHOP

South African inflation unchanged as some economists expect repo rate lift-off

Global inflation has surprised on the upside, which may factor into whether the Reserve Bank’s monetary policy committee decides to raise the interest rate on Thursday

  • Sarah Smit
4 min read
The US Federal Reserve’s Federal Open Market Committee has broken its 14-month policy pause with a significant 50 basis point cut to the federal funds rate. (Mark Wilson/Getty Images)
ANNABEL BISHOP

If the inflation-driving supply strain in the US lasts, it could put South Africa in a chokehold

In South Africa, a strong trade surplus, buoyed by robust commodity prices, will cushion our economy against pressure arising from US policy

  • Sarah Smit
7 min read