Economics
South Africa Raises Interest Key Rate First Time Since 2016
- Benchmark repurchase rate increased to 6.75% from 6.5%
- Reserve Bank sees average inflation above 5% in 2019 and 2020
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The South African Reserve Bank increased its benchmark interest rate for the first time in more than two years as it sees inflation risks remaining elevated.
The Monetary Policy Committee voted to raise the benchmark repurchase rate to 6.75 percent from 6.5 percent Thursday. Of the six panel members, half preferred the increase and the rest favored an unchanged stance, Governor Lesetja Kganyago told reporters Thursday in the capital, Pretoria.