PODCAST | SARB lifts lending rate, but could it be the last for a while?
Mudiwa Gavaza speaks to Annabel Bishop, chief economist at Investec
27 January 2023 - 17:01
by Mudiwa Gavaza
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
In this edition of Business Day Spotlight, host Mudiwa Gavaza is joined by Annabel Bishop, chief economist at Investec.
On Thursday, the Reserve Bank’s monetary policy committee (MPC) lifted the repo rate 25 basis points (bps) to 7.25%.
The central bank, like many others around the world, has hiked interest rates over the last year to combat inflation, which sits at 7.2%, well above the 3%-6% target range.
Listen here:
Bishop says this could be the last rate increase as the Reserve Bank is seen to now be close to a peak. That said, another 25 basis points increase is still a possibility. Even as prices such as fuel have come down recently, Bishop explains that the full effects of these rate increases will only be seen in at least nine months’ time.
The economist explains what the decision means for consumers, how other countries have dealt with their interest rates and the effect of energy uncertainty on SA.
The MPC expects the economy to grow 2.5% in 2022, compared with its previous prediction of 1.8% in November.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Business Day Spotlight
PODCAST | SARB lifts lending rate, but could it be the last for a while?
Mudiwa Gavaza speaks to Annabel Bishop, chief economist at Investec
In this edition of Business Day Spotlight, host Mudiwa Gavaza is joined by Annabel Bishop, chief economist at Investec.
On Thursday, the Reserve Bank’s monetary policy committee (MPC) lifted the repo rate 25 basis points (bps) to 7.25%.
The central bank, like many others around the world, has hiked interest rates over the last year to combat inflation, which sits at 7.2%, well above the 3%-6% target range.
Listen here:
Bishop says this could be the last rate increase as the Reserve Bank is seen to now be close to a peak. That said, another 25 basis points increase is still a possibility. Even as prices such as fuel have come down recently, Bishop explains that the full effects of these rate increases will only be seen in at least nine months’ time.
The economist explains what the decision means for consumers, how other countries have dealt with their interest rates and the effect of energy uncertainty on SA.
The MPC expects the economy to grow 2.5% in 2022, compared with its previous prediction of 1.8% in November.
Subscribe: iono.fm | Spotify | Apple Podcasts | Pocket Casts | Player.fm
WATCH: Is the Sarb’s rate hiking spree nearing an end?
ARTHUR KAMP: Time for the MPC to take the foot off the accelerator
MARKET WRAP: JSE buoyed by less hawkish Reserve Bank
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.
Most Read
Related Articles
Tough times ahead as interest rates are likely to rise through the year
ARTHUR KAMP: Time for the MPC to take the foot off the accelerator
Reserve Bank’s lighter touch signals interest rates are near peak
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.