Johannesburg – South Africa raised its benchmark interest rate for the third time in a row on Thursday, as inflation stayed stubbornly high.
The half-point increase brought rates to 4.75%, as the Reserve Bank voiced concerns about inflation.
Monetary policymakers want to keep inflation within three to six percent.
In March and April, consumer inflation was at 5.9%, despite two earlier interest rate increases this year.
ALSO READ | SA Reserve Bank hikes rates again to curb inflation
The bank in 2020 drastically slashed interest rates to a low of 3.5% to help the economy weather the pandemic.
But like other monetary policymakers around the world, it is acting to combat soaring consumer prices.
“Higher than expected inflation has pushed major central banks to accelerate the normalisation of global policy rates, tightening global financial conditions,” reserve bank governor Lesetja Kganyago said.
“On balance, and with some exceptions, capital flow and market volatility is expected to remain for emerging market assets and currencies.”
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Source: AFP
Picture: Pixabay
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