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South Africa Raises Key Rate for First Time in Three Years

  • Benchmark gauge increased by 25 bps, matching median forecast
  • Rand pares losses after weakening on Turkish lira slump
Lesetja Kganyago

Lesetja Kganyago

Photographer: Andrew Harrer/Bloomberg
Updated on

South Africa’s central bank raised interest rates for the first time in three years, unwinding some of the extraordinary monetary policy stimulus aimed at shoring up an economy ravaged by the coronavirus pandemic.

The monetary policy committee increased the repurchase rate to 3.75% from a record-low 3.5%, Governor Lesetja Kganyago said Thursday in an online briefing. That’s the first hike since November 2018 and follows 300 basis points of easing last year.