Sarb slows rate rises as South African economy falters
Blackouts may cost up to “two percentage points” of growth this year, central bank says
The South African Reserve Bank’s monetary policy committee raised its policy rate after a split vote on January 26, but slowed the rate of increase.
Three MPC members backed raising the rate by 25 basis points to 7.25%, slowing a tightening cycle begun in November 2021, while the other two backed a 50bp rise.
The MPC’s statement warned that increasing electricity shortages are likely to seriously reduce South Africa’s GDP growth this year.
The Sarb has raised rates at eight consecutive
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