ISAAH MHLANGA: Geopolitics would have played a big part in interest rates decision
Reserve Bank says for the first time that monetary policy is now restrictive
The Reserve Bank’s monetary policy committee (MPC) unanimously hiked the repurchase policy (repo) rate by 50 basis points (https://www.businesslive.co.za/bd/economy/2023-05-25-breaking-news-mpc-raises-repo-rate-50-bps-to-825-the-highest-level-since-2009/) (bps) to 8.25% on Thursday in line with market expectations.
Two factors that weighed on the decision are rand weakness against the dollar and interest rates rising around the world. The weakening of the rand since the March MPC meeting reflects domestic factors that are largely outside monetary policy influence...
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