Reserve Bank hikes repo rate

The South African Reserve Bank (SARB) has raised the repo rate by 25 basis points to 7.25 percent. 

The Monetary Policy Committee said the decision comes against a challenging and uncertain global backdrop, with geopolitical tensions adding to pressures. 

The Central Bank said the conflict in the Middle East has escalated since its previous meeting, while the Russia-Ukraine war continues to disrupt refinery capacity. 

The SARB said these conflicts are creating a large and persistent global supply shock, pushing up inflation risks. 

"A few months back, it seemed that the fuel-price shock might be unwinding, but now it has intensified. We are also seeing global rates moving higher. We have taken a measured approach to rate setting, in conditions of high uncertainty, but we remain focused on our price-stability mandate," said Reserve Bank governor Lesetja Kganyago.

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