South Africa: Central Bank increases prime interest rate for the first time since March 2016
Friday, 23 November 2018 14:58
On November 22, 2018, the South African Reserve Bank increased its prime interest rate by 25 basis points to 6.75% to try to stop the steep rise of inflation.
This is the first increase of the prime rate since March 2016.
"The weaker exchange rate and the impact of higher oil prices have contributed to inflation since March 2018. At the same time, domestic growth remains weak", the Monetary Policy Committee (MPC) indicated.
"[…] Delaying the adjustment could cause inflation expectations to become entrenched at higher levels and thus contribute to second round effects, which would require an even stronger monetary policy response in the future", the committee added.
According to Statistics South Africa, inflation rose from 3.8% in March 2018 to 5.1% in October 2018. Despite this rise, it is still within the 3%-6% range set by the Monetary Policy Committee.
Additional Info
- communiques: Non
- couleur: N/A
Live News
-
IMF appoints Mauritania’s Zeidane to head Africa Department
18:56
-
BCEAO sets June 30 deadline for operators to join instant payment platform
18:52
-
Mauritania’s Zeine Zeidane appointed director of IMF Africa Department
18:47
-
Cameroon higher education group plans microfinance bank for student startups
18:34
-
Internet Freedom in Africa Remains Uneven in 2026 Despite Rising Access
18:30
-
Cameroon Delivers Tractors to Agropoles to Scale Production and Agro-Processing
18:28
-
Togo receives CFA1.6B Chinese rice donation to support food security
15:01
-
Africa’s $35bn sports tourism opportunity: growth accelerates alongside traditional travel sectors
14:37
-
Uganda: UN Women, Equity Bank launch programme for women entrepreneurs in underserved communities
14:33
-
Chevron Approves Investment in Equatorial Guinea’s Aseng Gas Project
13:36
Operator explores renewable energy partnership with Italy’s Ascot Energy Move aims to stabilize p...
A $147M Novastar Ventures fund backed by major Japanese firms offers co-investment rights int...
First investor town hall since 2021 signals renewed engagement with markets Authorities hi...
Arise IIP plans to invest more than $3 billion in Kenya over five years The company wi...
Efforts to reinforce health systems are gaining pace across Africa, with this week’s developments fo...
Mauritanian Zeine Zeidane has been appointed director of the IMF’s Africa Department. A former prime minister and an IMF official for more than a decade,...
Africa’s sports economy could expand from $12bn to $30-35bn over the next decade Tourism contributes up to 8% of GDP across the continent,...
A two-year partnership will support women entrepreneurs with finance and training The initiative targets underserved and refugee-hosting...
Chevron has taken a final investment decision on the Aseng Gas Monetisation project. The project targets 550 billion cubic feet of gas with an...
The Bijagos Archipelago, located off the coast of Guinea-Bissau, stands as one of West Africa’s most extraordinary island systems. Made up of around forty...
RFI confirmed the end of “Couleurs Tropicales” following Claudy Siar’s departure after 31 years. The move follows a series of high-profile exits...