(ANSA) – JOHANNESBURG, 21 JUL – The South African central bank today raised the interest rate to 5.5 percent, the largest increase in a decade. The move – announced the day after the country reported its inflation record in 13 years – represents the fourth consecutive rate hike, motivated by concerns about high inflation coupled with weak economic growth.
Yesterday, South Africa’s statistical office, StatsSA, said annual consumer price inflation jumped to 7.4 percent in June – the highest level since 2009 – driven by rising food and transportation prices. According to estimates by South African Central Bank Governor Lesetja Kganyago, the national economy is expected to grow 2 percent this year, an upward revision from May’s 1.7 percent forecast.
This is still a decline from South Africa’s 4.9 percent growth in 2021 and is expected to slow further to 1.3 percent in 2023, before rising to 1.5 percent in 2024 as from downward revisions, he added. The Bank also revised its overall inflation forecast for this year upwards, estimated at 6.5 per cent. (HANDLE).
Source: Ansa
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