Economics

South Africa Hikes Key Rate and Signals Fewer Increases Ahead

  • Benchmark interest rate increased by 25 basis points to 4%
  • Central bank model suggests less aggressive rate-hike path

Shoppers at a market in the central business district of Pretoria, South Africa.

Photographer: Waldo Swiegers/Bloomberg
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South Africa’s central bank lifted its benchmark interest rate for a second straight meeting in a bid to tame rising inflation and signaled a less aggressive rate-hike path over the next three years.