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"The MPC has decided to continue on its gradual normalisation path and raise the repurchase rate by 25 basis points to 5.75% per annum, effective from Friday 18 July," said Marcus.
The last time Sarb adjusted the repurchase rate by less than 50 basis points was in October 2000.
Marcus said South Africa's economic growth outlook deteriorated and urged the implementation of reforms in order to boost growth.
"We would like to reiterate that monetary policy should not be seen as the growth engine of the economy. The sources of the below par growth performance are largely outside the realms of monetary policy."
Full story
16:28
Labour Wrap: SA a nation wallowing in debt http://t.co/mBXCshXzef via @Fin24
— Terry Bell (@telbelsa) July 17, 201416:17
Consumers are already heeding calls to reduce borrowing and we are seeing declining consumer credit demand. In many ways we are also seeing far deeper changes taking place; the former environment of low rates and high credit use is being replaced by much greater caution,” says FNB CEO Jacques Celliers.
16:15
First National Bank says will lift its prime lending rate to 9.25% from 9% following the decision earlier today by the SARB Monetary Policy Committee to increase its lending rate by 0.25%. The new rate will take effect from 18 July 2014 and will be implemented on all prime-linked loans.
16:13
Numsa could face lawsuit, denies foul play
Numsa told Fin24:
The union has made a public call to all our striking members to be vigilant and guard against agent provocateurs or rotten none Numsa elements that want to hijack the strike. We have put in place extra measures to ensure that all our actions and pickets are peaceful. In the same breadth, we remain humbled by high levels of discipline and maturity displayed by our members. – Castro Ngobese, Numsa spokesperson
16:12
More pics of strike violence: 
16:09
“@Fin24: #MPC Rand now trading at R10.71/$ http://t.co/Ry9LIjYtQn” Tested 10,66 just now
— Nelson (@Just_NelsonM) July 17, 201416:07
Rate hike disappointing for the housing market
16:06
Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.
@Fin24 @Trevorvdv What's a basis point? Speak English! Explain what it means....
— Jon Gericke (@bbjsportguy) July 17, 201416:00
Sarb hikes repo rate | Fin24 http://t.co/owirlvwvzm via @fin24
— Ari Gold/Don Draper (@SuperEbza) July 17, 201415:59
Not all gloom, savers will earn more interest on their savings.
Visit our Savings Issue
15:58
For consumers, their monthly bond repayment is the single largest expense. A home owner (or prospective buyer) with a bond of around R890 000 over a 20-year repayment period would have had to allow for an additional R284 per month following the January rate hike. – Samuel Seeff of Seeff Properties
15:57
Interest rates - up 25 points -SARB worried re inflation .Growth forecast slashed from 2.8% in January to 1.7% now...
— Bruce Whitfield (@brucebusiness) July 17, 201415:55
Repo rate 5.75%, prime rate 9.25% - Nedbank first bank to adjust rate
15:54
Although not unexpected, the increase in the repo rate by 25 basis points following this week’s MPC meeting (17 July 2014), is unfortunate news for homeowners, as well as the growing contingent of aspirant, first-time buyers, and will ultimately be most felt by those who are already feeling the pressure of rising utilities costs and erosion in real household disposable income. - Dr Andrew Golding, Pam Golding Property
15:53
Rand slightly stronger at R10.70/$
15:53
#USD/ZAR reacts to #MPC as #Rand weakens #popgoestheweasel
— Leigh Riley (@LeighRiley_IG) July 17, 201415:53
Liang Du: Lending practices especially to lower earners must be looked at again - e.g. taking out too many loans
15:52
Fin24 user Andrew M writes: With inflation rising at a fast pace it was inevitable this would happen. Do not forget prices will again increase dependent on outcome of wage negotiations pre-empted by strike action.
15:52
#SARB's central forecast assumes a quick resolution to metals strike #MPC
— RMB Global Markets (@RMB_GM) July 17, 201415:52
Mike Schussler: It is a case of Sarb wanting to give consumers a reason not to buy that much to bring current account deficit down
15:51
#SARB's central forecast assumes a quick resolution to metals strike #MPC
— RMB Global Markets (@RMB_GM) July 17, 201415:51
Mike Schussler: Rand plays role in bigger food prices with knock-on effect on chickens etc
15:48
Mike Schussler: Food inflation is coming down due to our good rains
15:48
Mike Schussler: If Numsa is going to try and prove a point by striking longer than Amcu, we are in for trouble
15:47
Just in form a Fin24 user:
15:47
Mike Schussler: Does not make sense for Numsa to continue striking
15:45
Economist Liang Du: SA is slightly less attractive to investors than in January
15:44
#GillMarcus: Recession unlikely, bt we must rebuild confidence in economy #SouthAfrica http://t.co/CgAJtreKXQ
— NewsWall SouthAfrica (@NewsWallCoZa) June 10, 201415:44
15:43
This IS still accommodative, does support the economy #SARB
— Razia Khan (@raziakkhan) July 17, 201415:43
Mike Schussler: Marcus is saying you must look at productivity versus the wages people are getting - but we do not have enough people in jobs.
15:42
Economist Mike Schussler: Marcus has to look at bigger picture - she wants people who save to have a bit more to save.
15:41
Rentekoers styg van 5,5% tot 5,75% http://t.co/Xywqymc07O
— DieBurger (@Die_Burger) July 17, 201415:41
Considering that the housing market is finally on the mend, this is just too soon and will certainly do little to instill investor confidence or encourage economic growth. - Samuel Seeff of Seeff Properties
15:41
#SARB #MPC votes: 1 member: 50bp hike, 1 member: no hike, rest: 25bp hike
— RMB Global Markets (@RMB_GM) July 17, 201415:40
Although the latest NCR statistics show a positive trend, this is largely due to the effect of the credit amnesty. From what we can see at DebtBusters the current financial environment continues to be difficult, as our clients in the first quarter of 2014 required 102% of their net income to service their existing debt obligations, before they came to us. - Ian Wason CEO of DebtBusters
15:40
Interest rates make little difference to inflation if it is imported inflation! Local growth = better rand = lower inflation #mpc #Sarb
— Michael Treherne (@mwtreherne) July 17, 201415:39
Despite interest rates remaining relatively low, today’s announcement will result in more pressure on an already struggling new vehicle sales market - Rudolf Mahoney of WesBank.
15:38
Cape Town - South African Reserve Bank (Sarb) governor Gill Marcus on Thursday announced a repo rate hike of 25 basis points, following a three-day meeting with the monetary policy committee (MPC).
“The MPC has decided to continue on its gradual normalisation path and raise the repurchase rate by 25 basis points to 5.75% per annum, effective from Friday 18 July,” said Marcus.
The repurchase rate is the interest rate at which the Sarb lends money to commercial banks.
The last time Sarb adjusted the repurchase rate by less than 50 basis points was in October 2000.
The Sarb has revised inflation forecasts to 6.3% in 2014, said Marcus.
Marcus said South Africa's growth outlook deteriorated and is compounded by labour unrest.
The Reserve Bank revised the GDP forecast to 1.7% compared to 2.1% previously.
Marcus said that the global economy is showing mixed signals. She said the US is expected to grow at 2% in 2014 from 3%, while the outlook for the eurozone has also deteriorated.
Marcus warned in January that the bank is in a rate hiking cycle, announcing a 50 basis-point rate hike at at the time.
She said the outlook for emerging markets also remains subdued.
Click here to see how the announcement unfolded.
15:37
Just in from a Fin24 user on the Numsa strike: "Strikers will get what is coming for them sooner or later, for every action there will be a reaction, they have started something that has gone out of control. Don't they realise the pen is mightier than the sword."
15:36
Rand now trading at R10.71/$
15:34
More strike damage images from Fin24 users:
15:33
Tougher year ahead for #SouthAfrican #economy... http://t.co/fQh06MmDck #sarb #gillmarcus #southafrica pic.twitter.com/ZAzT0ypdpG
— SA Commercial Prop (@SACommercialPro) June 25, 201415:33
#MPC increases rates by 25 basis points. "Future rates will be gradual and data dependant" - Marcus @cnbcafrica
— Gugulethu Mfuphi (@gugumfuphi) July 17, 201415:32
Marcus: Challenge is what to do to ensure inclusive growth and generate employment as well
15:32
Oops! 25 basis points. Giiiiiiil! Repo Rate = 5.75%. Like pain, debt demands to be felt #MPC
— Karabo Tabane (@DaBrownNative) July 17, 201415:32
Marcus: MPC vote was: 6 to 1 vote - 1 person said hold, 1 said 50 basis points
15:32
Marcus: Strong common understanding of what the issues are among MPC members
15:31
#SARB raises #interest rates by 25 bps. Repo now at 5.75% and pushes prime to 9.25%
— SCOFIELD!!! (@scofield123) July 17, 201415:31
Marcus: Any future moves in rates will be highly data dependent - hiking cycle will be gradual to address rising inflation and slowing growth
15:31
Marcus: Must achieve higher and more inclusive growth
15:31
Marcus: Must get SA back to work
15:30
Marcus: Raising by 25 basis points
15:30
SARB concerned about inflation outlook; wage-price spiral threat has increased
— Sure Kamhunga (@SureKamhunga) July 17, 2014
15:30
Marcus: We have to be mindfull of supply side shocks
15:30
Marcus: Inflation expectations remained relatively anchored but could be risk of becoming dislodged
15:29
Marcus: Possibility of a wage price spiral has increased
15:29
Marcus: Metal strike could have wider impact on weak outlook which monetary policy cannot ameliorate
15:29
She can make jokes too! >> RT @MohammedNalla: #SARB says more attention needs to be paid to excessive executive pay #inequality
— Trader1137 (@Trader1137) July 17, 201415:29
Marcus: Should current trends persist, expect further slight increase in petrol price in August
15:28
Marcus: Domestic petrol prices driven mostly by exchange rate changes
15:28
MPC concerned platinum wage settlements may have caused precedent - #Marcus
— BusinessDay TV (@BusinessDayTV) July 17, 2014
15:28
Marcus: Food prices will remain highly sensitive to exchange rate
15:27
#SARB MPC concerned about mining sector wage settlements #Marcus
— SCOFIELD!!! (@scofield123) July 17, 201415:27
Marcus: Global food price pressures
15:27
Marcus: Agriculture producer inflation declined
15:27
She keeps talking about the mining sector.I hear 27 000 jobs were shed.That's bad.#MPC
— Jobe SC Sithole (@Jobza) July 17, 201415:27
Marcus: Attention must be paid to excessive pay to executives
15:26
Marcus: MPC concerned that recent wage settlements could set precedent without higher productivity
15:26
#GillMarcus: Weak private sector investment. All gains in jobs was in the public sector. State creating jobs, private sector cutting jobs
— Business Report (@busrep) July 17, 2014
15:25
Marcus: Upside risk to inflation outlook
15:25
Will #GillMarcus punish South Africans yet again for 'Cost-push inflation'? #SARB #MPC
— Justin Mark Davidson (@JDav27) July 17, 201415:25
Marcus: Weakening household consumption expenditure.
15:24
SME owners confirm a class action lawsuit against Numsa, once this strike is finished, for our damages. "I have already surveyed other employers in the area who will join our action." say a small business owner in Johannesburg.
15:23
Lots of disappointing #economy data weigh on #SARB growth outlook
— Mohammed Nalla (@MohammedNalla) July 17, 201415:23
Consumption expenditure by households remains main driver of GDP growth - #Marcus
— BusinessDay TV (@BusinessDayTV) July 17, 2014
15:22
Marcus: Growth in credit to corporate sector has increased steadily due in part to renewable energy contracts.
15:19
A SME owner send this pic to show how his business has been damaged.
15:19
Marcus: Marked moderation of spending by households.
15:18
Marcus: Weak private sector investment.
15:18
Fin24 receiving a stream of SME owners hit by metals strike: One just in -
"I own a Glass and Aluminium business in Jet Park, and due to intimidation of my staff, and out of fear for their safety, we have been forced to shut for almost 2 weeks now."
15:18
Marcus: Current strike by metal workers is likely to undermine the outlook.
15:18
Marcus: Manufacturing performance has been disappointing.
15:18
Marcus: Mining sector contracted, mainly driven by strike impact.
15:16
Marcus: Sharp decline in manufacturing.
15:15
Marcus: Impact of continued labour disruptions.
15:15
Marcus: Since early June rand has largely decoupled from its emerging market peers.
15:14
Since the previous MPC meeting, the Eurozone and Turkey, among others, have reduced their policy rates. #MPC
— CNBC Africa (@cnbcafrica) July 17, 2014
15:14
Marcus: Rand has depreciated since previous MPC meeting.
15:14
Marcus: Exchange rate of rand still upside risk
15:13
Marcus: UK expected to be the first in EU to raise interest rates.
15:13
Marcus: Concerns that current low interest rates may encourage excessive risk taking.
15:12
Marcus: Outlook for emerging markets remain relatively subdued.
15:12
Marcus: Real output in Japan is expected to contract.
15:11
SA's central bank governor admits outlook of Africa's 2nd largest economy has worsened as a result of strikes in mining, manufacturing
— Sure Kamhunga (@SureKamhunga) July 17, 2014
15:11
Marcus: Early optimism that US will grow at 3% in 2014 has been moderated – partly due to weather conditions and health care costs.
15:11
Marcus: Reuters survey shows: on average for inflation to peak in second quarter and return to target range in first quarter of 2015.
15:09
Rand/dollar exchange rate now at R10.72
15:08
Marcus: Average inflation expectation for 2014 and 2015 remains unchanged at 6.1% for both years, declining to 5.9% in 2016.
15:08
Marcus: Moderate upward pressure from exchange rate.
15:07
Marcus: Inflation now expected to be 6.3% in 2014
15:06
#SARB raises 2014 inflation forecast to 6.3% for the full year
— RMB Global Markets (@RMB_GM) July 17, 201415:06
Marcus: Transport index increased despite 15c per litre decline in petrol price in May.
15:05
Marcus: Food and non-alcoholic price inflation were main drivers
15:05
Marcus: Possible wage hike spiral – in excess of inflation has added to the upside risk of inflation outlook.
15:03
Marcus: Economic growth outlook has deteriorated due to strikes
15:03
Sarb governor Gill Marcus opens MPC floor, with announcements, welcomes.
