As expected, Lesetja Kganyago, the South African Reserve Bank(SARB) governor, announced that the repo rate will increase by 25 basis point to 4.25%, from 4.00%. This follows a recent increase in January 2022 to 4.00%.
The increase was anticipated by many economists. This is a move made by the reserve bank to manage inflation and keep the CPI at bay. This should be taken as a positive for the South African Rand.
The prime lending rate will increase to 7.75%