SARB hikes repo rate by 50 basis points
It's going to cost South Africans more to service their debts.
The repo rate has been increased by 50 basis points to 4.75% by the South African Reserve Bank.
Reserve Bank's Governor Lesetja Kganyago says the economy is expected to grow by 1.7% this year, revised down from 2% that was forecast in March.
"This is due to a combination of short-term factors, including the flooding in KwaZulu-Natal and the continued electricity supply constraints."
READ: 'Worst is still to come' as cost of living keeps rising
"Growth in output in the first quarter of this year is expected to be 3.6%, stronger than the 3.2% expected at the time of the March meeting."
The forecast for headline inflation has been revised to 5.9 percent from 5.8% due to the higher food and fuel prices.
"As a result of higher global food prices, local food price inflation is also revised up and is now expected to be 6.6% in 202 and 5.6% in 2023 . Food price inflation is forecast to ease to 4.2% in 2024."
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