The benchmark interest rate has been raised for the third time in a row as inflation stayed stubbornly high. The half-point increase brought rates to 4.75 percent, as the Reserve Bank voiced concerns about inflation.
Monetary policymakers want to keep inflation within three to six percent. In March and April, consumer inflation was at 5.9 percent, despite two earlier interest rate increases this year.
The bank in 2020 drastically slashed interest rates to a low of 3.5 percent to help the economy weather the pandemic.
But like other monetary policymakers around the world it is acting to combat soaring consumer prices.
Higher than expected inflation has pushed major central banks to accelerate the normalisation of global policy rates, tightening global financial conditions,” Reserve Bank governor Lesetja Kganyago said.
“On balance, and with some exceptions, capital flow and market volatility is expected to remain for emerging market assets and currencies.
In other news – Watch LIVE: Gospel star Deborah Fraser memorial service
Fans, friends, and colleagues are remembering the late gospel musician, Deborah Fraser, at a memorial service in Johannesburg on Thursday.
The multi-award-winning gospel star died at the Chris Hani Baragwanath Hospital on Sunday after a short illness; she was 56. Learn more