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Picture: 123RF/POP NUKOONRAT
Picture: 123RF/POP NUKOONRAT

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.

Join the discussion:

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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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