Reserve Bank hikes Repo Rate by 75 basis points

Reserve Bank hikes Repo Rate by 75 basis points

The Reserve Bank has revised down its growth forecast for the country, with economic growth now expected to reach one-point-nine percent from two-percent this year. Yesterday, the Bank announced a seventy-five-basis points repo rate increase, bringing the repo rate to 6.25%, up from the 5.5% announced in July. Reserve Bank governor Lesetja Kganyago said while the producer price and food prices have eased, the Russia-Ukraine war still has adverse effects on prices globally. Notably, the US Federal Reserve Bank on Wednesday raised the rates by 0.75 percentage points for the third consecutive time this year. Lumkile Mondi from the School of Economics and Finance, Wits University joins us for this discussion.

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