PODCAST | Inflation fight pushes up SA interest rates
Mudiwa Gavaza is joined by Patrick Buthelezi, economist at Sanlam Investments
03 April 2023 - 17:31
by Mudiwa Gavaza
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A surprise interest rate increase is the focus of this edition of the Business Day Spotlight.
Our host Mudiwa Gavaza is joined by Patrick Buthelezi, economist at Sanlam Investments.
The SA Reserve Bank surprised the market with a 50-basis point interest rate hike last week, raising the repo rate to 7.75%. Economists had expected no increase or a 25-basis point hike at most.
Buthelezi explains that inflation, which has been running rampant over the last year, was the main driver for the surprise decision, given the SARB’s aim to keep inflation in a target range of 3% to 6%.
He explains that current economic conditions make it difficult to forecast growth estimates for the country. Sanlam sees SA achieving 0% — 0.08% growth for 2023.
Topics of discussion include: a review of SA’s latest interest rate decision; rationale for the surprise hike in rates; and factors affecting economic growth forecasts for the year.
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 | Inflation fight pushes up SA interest rates
Mudiwa Gavaza is joined by Patrick Buthelezi, economist at Sanlam Investments
A surprise interest rate increase is the focus of this edition of the Business Day Spotlight.
Our host Mudiwa Gavaza is joined by Patrick Buthelezi, economist at Sanlam Investments.
The SA Reserve Bank surprised the market with a 50-basis point interest rate hike last week, raising the repo rate to 7.75%. Economists had expected no increase or a 25-basis point hike at most.
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Buthelezi explains that inflation, which has been running rampant over the last year, was the main driver for the surprise decision, given the SARB’s aim to keep inflation in a target range of 3% to 6%.
He explains that current economic conditions make it difficult to forecast growth estimates for the country. Sanlam sees SA achieving 0% — 0.08% growth for 2023.
Topics of discussion include: a review of SA’s latest interest rate decision; rationale for the surprise hike in rates; and factors affecting economic growth forecasts for the year.
Business Day Spotlight is a TimesLIVE Production.
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