Economics
South Africa Signals Faster Rate Hikes After Surprise Jumbo Move
- Central bank model shows more aggressive increases in 2022-23
- Rand, bank stocks advance on biggest rate hike in two decades
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South Africa surprised financial markets by delivering its biggest increase in borrowing costs in almost two decades and signaled a faster pace of hikes through next year.
The monetary policy committee raised the repurchase interest rate to 5.5% from 4.75%, Governor Lesetja Kganyago said Thursday in an online briefing. It’s the biggest hike since September 2002 and aligns the South African Reserve Bank with other global central banks unleashing the most aggressive tightening of monetary policy in a generation to cool surging inflation.