South African Central Bank Sees Need to Raise Key Rate Further

South Africa’s central bank sees a need to continue raising borrowing costs, even after hiking interest rates faster than its modeling suggested.

The monetary policy committee raised the benchmark repurchase rate by three-quarters of a percentage point Sept. 22. That was faster than the bank’s quarterly projection model indicated after its July meeting, when it showed two increases of 25 basis points each through the first quarter of next year, the South African Reserve Bank said Tuesday in its six-monthly Monetary Policy Review.