By Aneeqa du Plessis
After much anticipation, The South African Reserve Bank (SARB) has increased the repo rate by another whopping 50 basis points to 7.75%.
Commenting on the hike, SA Federation of Trade Unions (SAFTU) said it opposed the latest interest rate hike, as it will have an adverse impact on the living standards of workers and have a devastating blow to already ailed small businesses. The prime borrowing rate of will now increase to 11.25%.
However, Economist Dawie Roodt said he agreed with the increase.
“The research at the Reserve Bank indicated that actual inflation and inflation expectation has been rising and is higher than previously anticipated and that’s the reason why the reserve bank has taken the route of 50 points and after listening to the explanation I have to agree,” said Roodt on VOC’s Ramadhan AM on Friday morning.
This is the 9th time the repo rate has been consecutively increased since November 2021. It is at its highest since 2009.
VOC
