More repo rate hikes in store warns economist
An economist has warned South Africans to prepare their pockets for steeper interest rates.
Graeme Kerner expects the repo rate, which was adjusted by 50 basis points to 4.75% on Thursday, to be pushed as high as 6% by the end of the year.
"It's quite conceivable that we get repo back to 6% by year-end. That's not something out of the ordinary this is not a GFC kind of panic back where the repo went to 12, but 6% is probably about the right level considering inflation sitting at 6 and most likely to tick beyond that mark for the next six months or so."
The prime lending rate's been adjusted to 8.25%.
READ: SARB hikes repo rate by 50 basis points
The SA Reserve Bank says it's looking to counter inflation, with headline inflation revised to 5.9% due to higher food and fuel prices.
