fbpx
HomeBusinessMore Financial Woes For Consumers As Reserve Bank Hikes Interest Rate By...

More Financial Woes For Consumers As Reserve Bank Hikes Interest Rate By 75 Basis Points To 5.5%

Governor Lesetja Kganyago made the announcement following the monetary policy committee meeting on Thursday afternoon. He noted that the economy was still recovering from the COVID-19 pandemic.

More Financial Woes For Consumers As Reserve Bank Hikes Interest Rate By 75 Basis Points To 5.5%-SurgeZirc SA
More Financial Woes For Consumers As Reserve Bank Hikes Interest Rate By 75 Basis Points To 5.5%

With effect from Friday, the South African Reserve Bank increased the repo rate by 75 basis points to 5.5% per year.

Governor Lesetja Kganyago made the announcement following the monetary policy committee meeting on Thursday afternoon. He noted that the economy was still recovering from the COVID-19 pandemic.

- Advertisement -

YOU MAY ALSO LIKE: Lindiwe Zulu Believes Zimbabweans ‘Should Be In Their Home Country’

“Despite this outcome, flooding in KwaZulu-Natal and more extensive load-shedding are expected to result in a contraction of 1.1% in the second quarter. Growth in the third and fourth quarters is forecast to be 0.7% and 0.4%, respectively.”

Kganyago predicted that the economy would grow by 1.3 percent in 2023 and 1.5 percent in 2024, which was lower than the previous projection of 1.9 percent for both years at the time of the last meeting.

- Advertisement -

YOU MAY ALSO LIKE: Watch| 15 Heavily Armed Criminals Storm Lakeside Mall In Benoni

The bank’s forecast of headline inflation for this year has been revised higher to 6.5%.

- Advertisement -

This comes after Stats SA recorded the annual consumer price inflation at 7.4% for June – the highest in 13 years.

WATCH: Repo rate announcement

- Advertisement -
Elize Coetzee for SurgeZirc SA
Elize Coetzee for SurgeZirc SAhttps://new.surgezirc.co.za
Elize Coetzee, a seasoned journalist, is the driving force behind SurgeZirc SA’s world news and world politics coverage. With an unwavering commitment to truth, Elize delves into global affairs, providing live updates, in-depth investigations, and thought-provoking analysis. Whether it’s geopolitical tensions, international diplomacy, or breaking stories, Elize’s incisive reporting keeps readers informed and engaged.
RELATED ARTICLES
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
- Advertisment -

Just Dropped

0
Would love your thoughts, please comment.x
()
x