South Africans are set to feel more pain in the coming months as the South African Reserve Bank (Sarb) on Thursday hiked the repo rate once again by 25 basis points, taking the repurchase rate (repo rate) to 7.25% from 7%.
This means that the prime lending rate in the country will increase from 10.5% to 10.75%.
Sarb governor Lesetja Kganyago said that the changes will come into effect from today.
“As this year commences, high inflation and weak economic growth continue to shape global conditions. Russia’s war in the Ukraine drags on and recession risks remain elevated in the Euro area, even though energy constraints have eased,” Kganyago said during a media briefing.