South African Rate Hike Exceeds All Expectations; Rand Surges
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South Africa’s central bank surprised financial markets by hiking interest rates more than expected as it warned of higher inflation this year. The rand rallied.
The monetary policy committee raised the benchmark interest rate to 7.75% from 7.25%, Governor Lesetja Kganyago said Thursday in a briefing north of Johannesburg. All of the 19 economists in a Bloomberg survey predicted a 25 basis-point hike.