The South African Reserve Bank (SARB) has increased its benchmark repo rate by 25 basis points to 7.25%, marking its second interest rate hike this year.
SARB Governor Lesetja Kganyago announced the decision on Wednesday following the central bank’s latest Monetary Policy Committee meeting.
The increase will also push the prime lending rate charged by commercial banks up by 25 basis points to 10.75%.
The latest move means borrowing costs will rise for households and businesses with loans linked to the prime lending rate, including mortgages and vehicle finance.
The 25-basis-point increase follows an earlier rate hike this year as the central bank continues to adjust monetary policy in response to prevailing economic and inflation conditions.
