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Repo Rate Up Once More

This month the Repo Rate went up by another 25 basis points or 0.25% meaning the Repo Rate is now 7%.

Reserve Bank Governor Lesetja Kganyago largeIn March, Reserve Bank Governor Lesetja Kganyago announced that due to pressures on the economy (including a higher than hoped for inflation rate) and weakening national currency the Reserve Bank had decided to push up the rate to 7%. This follows on the heels of similar hikes over the last few months in reaction to the world and local economy.

 

Repo Rate 7%

Repo rate chart-12-1009Economists do not expect this to be the last climb of the year. While in the past decade the rate has maxed out at around 12% (in 2008- 2009) consumers are now once again beginning to feel the effects of a climbing rate after all time lows. How does this rate compare to other countries? Well, Russia’s repo rate sits at 11% and Brazil at 14.25%.