South Africa Raises Rates to Highest Since 2009; Rand Slumps
- Rand at record low as bank warns of further currency weakness
- All five MPC members voted for 50 basis-point rate increase
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South Africa’s central bank raised rates to the highest level in 14 years to rein in inflation expectations in an economy that’s expected to barely grow this year. The rand fell to a record low as Governor Lesetja Kganyago warned that further currency weakness is likely.
The monetary policy committee raised the benchmark interest rate to 8.25% from 7.75%, Kganyago said at a briefing north of Johannesburg on Thursday. The move was predicted by 21 of 25 economists in a Bloomberg survey.