The South African Reserve Bank (SARB) will raise the repurchase rate by 25 basis points to 6.25% per annum, effective from tomorrow (20 November 2015).
This was announced by SARB governor, Lesetja Kganyago, at the conclusion of a two-day meeting of the bank’s Monetary Policy Committee (MPC).
This comes after rates were last lifted by 25 basis points in July on the back of inflationary concerns.
In a statement, Kganyago noted that since the MPC’s last meeting, the inflation forecast has remained relatively unchanged but that the risks to the forecast have increased.
“The key risks are a marked depreciation of the rand; worsening drought conditions and the likely impact on food prices; as well as the possibility of additional electricity tariff adjustments,” he said.
He added that the SA economy remained weak despite an improved performance in the manufacturing sector, but that the mining and agricultural sectors appear to have contracted further in the third quarter.
