Lesetja Kganyago’s gradual rate hikes face headwinds
Inflation forecast pushed sharply higher to 4.9% and steep energy price rises pose a threat
27 January 2022 - 23:44
The Reserve Bank still believes that a gradual increase in SA’s interest rates will be enough to keep inflation in check — but it cautioned on Thursday that this might have to change if the Federal Reserve moved faster than expected to tighten monetary policy and if global market conditions became more volatile.
This came as the Bank’s monetary policy committee voted four to one to increase the official repo rate by 25 basis points (bps) to 4%, as expected, raising its inflation forecast for this year sharply to 4.9% mainly on higher oil prices, and for next year to 4.5%...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.