JOHANNESBURG — South African Reserve Bank Governor Lesetja Kganyago is expected to raise the repo rate on Thursday afternoon, with the only question being by how much.
South Africa is among several countries where inflation has increased due to various factors, including the war in Ukraine.
Stats SA said annual inflation for April was unchanged at 5.9%, but was still in the upper end of the Reserve Bank’s target of 3% to 6%.
Opinions are divided on whether the monetary policy committee will increase the repo rate by 25 or 50 basis points.
Economist Bonke Dumisa said it was clear that debt-ridden South Africans would have to adjust their budgets.
“We expect home loans to go up from Friday, auto rates are flexible for most people,” he said.