Rand tanks after latest interest rate hike

South Africa’s rand plummeted to its weakest ever level on record – R19.74 to the dollar at the time of publishing – following Thursday’s rate hike announcement by the South African Reserve Bank (SARB).

ALSO READ | Interest rate: R5 million bond, no deposit now costs R54 185 per month!

As reported by The South African website, the SARB’s Monetary Policy Committee announced yet another 50 basis point hike, marking the 10th in a rate cycle that dates back to November 2021.

ALSO READ | Interest rate hike: How much more your BOND will cost each month [table]

Subsequently, the already battered and bruised rand took another body blow.

That decision took the country’s repurchase rate to 8.25% while the prime lending rate rose to 11.75%.

The changes will come into effect from Friday, 26 May 2023.

MUST READ | These 10 products have seen the greatest price hike in the last 12 months

According to Reserve Bank governor Lesetja Kganyago, the vote was unanimous, with all five members voting for a 50 basis point hike.

As at 17:30 on Thursday, the rand was trading at R24.34 to the pound and R21.17 against the euro.

IN CLOSING | DEVELOPING STORY: Constantia mass murder – police on scene