Sarb raises rates and warns of worsening economy
Central bank cuts growth forecast and says long-term inflation expectations are rising
The South African Reserve Bank raised its policy rate again on May 25, despite falling headline inflation, and warned of worsening economic conditions.
The Sarb’s five-member monetary policy committee unanimously voted to raise the rate by 50 basis points to 8.25%. This was its tenth consecutive rate hike, making a total of 450bp of increases since November 2021.
Headline inflation is decelerating, but is still above the Sarb’s target range of 3% to 6%. In April, the headline reading was 6.8%
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