Reserve Bank hikes repo rate - EWN

The South African Reserve Bank (SARB) has raised the repo rate by 25 basis points to 7.25 percent. 

The Monetary Policy Committee said the decision comes against a challenging and uncertain global backdrop, with geopolitical tensions adding to pressures. 

The Central Bank said the conflict in the Middle East has escalated since its previous meeting, while the Russia-Ukraine war continues to disrupt refinery capacity. 

The SARB said these conflicts are creating a large and persistent global supply shock, pushing up inflation risks. 

"A few months back, it seemed that the fuel-price shock might be unwinding, but now it has intensified. We are also seeing global rates moving higher. We have taken a measured approach to rate setting, in conditions of high uncertainty, but we remain focused on our price-stability mandate," said Reserve Bank governor Lesetja Kganyago.

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