Economy

SARB’s aggressive rate hikes key to containing high inflation

Following the South African Reserve Bank’s (SARB’s) decision to increase its repo rate by 0.75%, FNB will raise its prime lending rate by 0.75%. The prime rate-linked interest rates will be adjusted from Friday 23 September 2022.

PPS Investments: MPC – 22 September 22

The Monetary Policy Committee (MPC) increased the repo rate by a further 75-basis points to 6.25%, which is close to where it was before the pandemic. Three members of the committee opted for 75-basis points, while two voted in favour of a 100-basis point increase.

MPC rate hike reaction from EY Africa Chief Economist Angelika Goliger

PPS Investments: CPI for August 2022

Consumer price inflation increased by 7.6% year-on-year in August 2022, down from the 7.8% year-on-year print in July 2022. Inflation now averages 6.6% for the calendar year-to-date which is well above the top end of the target band. Month-on-month inflation increased by 0.2%, compared to the 1.5% increase the previous month.