South African Reserve Bank’s (SARB’s) Monetary Policy Committee voted to hike interest rates in the country by 50 basis points on Thursday.
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This will take the repurchase rate to 7.75% and the the prime lending rate to 11.25%.
Three members of the monetary policy committee voted in favour of the 50 basis point hike, while two wanted a 25 basis point increase.
The latest rate hike brings the total increase to 425 basis points since November 2021.
On a new home loan of R2 million at ‘prime’, the latest increase hikes the monthly instalment by around R680.
Since November 2021, monthly payments on a R2 million home loan are now almost R5 500 more expensive.
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Rates are now at their highest point in 13 years – since June 2009 – when the fallout from the global financial crisis weighed on the local currency.
According to Reserve Bank governor Lesetja Kganyago, the hike comes on back of a persistently high inflationary environment, alongside troubles for both local and global economic growth.
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The rate hike was higher than market expectations, where most economists and analysts anticipated a 25bp hike, as reported by The South African website.
More to follow …
