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Cape Town - The South African Reserve Bank (Sarb) has hiked its key lending rate by 50 basis points to 5.5%, governor Gill Marcus announced on Wednesday.
This implies that banks will also increase their prime lending rate.
Marcus, who last cut the repo rate in July 2012, announced the decision following the monetary policy committee's first meeting of the year.
The increase will take effect as of January 30 2014.
"The MPC is of the view that, notwithstanding this increase in the repo rate, the monetary policy remains accommodative," said Marcus.
She said the primary responsibility for the bank is to keep inflation under control.
The Sarb also revised its growth forecasts for 2014 to 2.8%, down from 3.0%
Marcus said any further moves in the repo rate depends on data and that the bank will continue to monitor developments closely.
See as the announcement unfolded.
- Fin24
This implies that banks will also increase their prime lending rate.
Marcus, who last cut the repo rate in July 2012, announced the decision following the monetary policy committee's first meeting of the year.
The increase will take effect as of January 30 2014.
"The MPC is of the view that, notwithstanding this increase in the repo rate, the monetary policy remains accommodative," said Marcus.
She said the primary responsibility for the bank is to keep inflation under control.
The Sarb also revised its growth forecasts for 2014 to 2.8%, down from 3.0%
Marcus said any further moves in the repo rate depends on data and that the bank will continue to monitor developments closely.
See as the announcement unfolded.
- Fin24
