The South African Reserve Bank's Monetary Policy Committee (MPC) has hiked the repurchase rate (repo rate) by 75 basis points.
The increase means that the repo rate will now be 6.25% per year from 23 September 2022, with prime now at 9.75%.
This is the fifth consecutive increment following a two 25 basis points hike in November and in January.
The repo rate was hiked by 50 basis points at the May meeting.
The MPC upped the ante, with a 75 basis point rise at its July meeting.
Addressing media on Thursday, Reserve Bank Governor Lesetja Kganyago said three members of the MPC preferred the announced increase.
“Two members preferred a 100 basis points increase,” he said.
The level of the repurchase rate is now closer to the level prevailing before the start of the COVID-19 pandemic in 2020.
