Reserve Bank expected to hike rates again | Business

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Central banks in Africa’s biggest economies are poised to raise interest rates this month to contain sticky inflation and deter a selloff in their assets exacerbated by the collapse of US lender Silicon Valley Bank and stress at Credit Suisse.

South Africa, along with Nigeria, Egypt, Morocco and Kenya are projected to raise borrowing costs in the next two weeks. Monetary authorities in nations such as Ghana and Angola, where inflation is on a downswing are predicted to hold.

The South African Reserve Bank’s fight against inflation is however unlikely to be derailed by weakness in the global banking system. Policymakers nearing the end of the interest-rate hiking cycle, will probably raise the benchmark by 25 basis points to address potential risks to the inflation outlook, said Sanisha Packirisamy, an economist at Momentum Investments. They include the knock on effects of a weaker currency, with the rand having weakened about 7% against the dollar this year.

Average inflation expectations for the year stand at 6.3%, well above the central bank’s 4.5% target.

 

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Jerome Powell trying to control inflation memely memelyxyz

Moronic strategy. We all know this. Raising rates does not contain inflation but suffocates already heavily indebted hard working South Africans. More repossessions will be the end result.

😭😭🙆‍♂️🙆‍♂️🙆‍♂️

This has nothing to do with inflation it is about protecting the Rand. Raising rates for inflation in normal economic is to cool down an overheated economy. Here we have this economy is abnormal with stagnation and inflation from weak Rand and electricity shortfall and increases

Interest increases is what's causing these banks to become unstable in the first place.

When is Brics moving away from this USD pegged choke hold and in favor of the people?

Perhaps my grasp of economics is limited. I think increasing interest rates is ultimately inflationary. So, the problem feeds on itself.

hike it 10 times more nothing will happen, the people of this country they are used to this abuse so dont worry ur safe just hike it

Interest rates isende, yey asinamali thina fokof!

Si se kakeni 🤦🏿‍♂️

GIVE US A CHANCE MAN!!!!!!!

We need to strike against these ones, they think their job is to hike rates. This Kganyago is acting as the enemy of the people.

Keeping up with the Feds

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