Skip to content

South Africa Hikes Rates by Most Since 2016 With More to Come

  • Reserve Bank now sees benchmark rate higher through 2024
  • Rand extends gains as bank model shows steeper rate-hike path
Lesetja Kganyago
Lesetja KganyagoPhotographer: Waldo Swiegers/Bloomberg
Updated on

South Africa’s central bank raised its benchmark interest rate by the biggest margin in more than six years and signaled even higher borrowing costs are ahead, escalating its response to global headwinds that have fueled inflation and capital outflows.

The 50-basis-point increase in the repurchase rate to 4.75% was the biggest since January 2016 and matched the median of 20 economists’ in a Bloomberg survey. Of the five members on the panel, four voted for the half-point increase and 1 preferred a 25 basis-point hike.