The Reserve Bank raised its benchmark interest rate for the first time in a year yesterday, citing rising inflation and food and electricity prices. The repurchase, or repo, rate was increased by 25 basis points to 6%, bank governor Lesetja Kganyago said in Pretoria.South Africa's leading economists had been almost equally divided on whether the bank's monetary policy committee would take the step of increasing borrowing costs for the first time in a year.Four members of the MPC favoured the rate increase, and two wanted it left unchanged.The energy crisis is clouding the outlook for economic growth and inflation in South Africa.The Reserve Bank forecasts economic growth of 2% this year, 2.1% next year and 2.6% in 2017. Inflation is expected to peak at 6.9% in the first quarter of next year. The measure will probably average 5% this year, 6.1% next year and 5.7% in 2017.While inflation has stayed within the bank's 3% to 6% target since September, a weaker rand, expected higher food prices and rising electricity costs threaten to push it outside of that band.The bank had kept the repo rate unchanged since July last year to help support an economy hit by strikes, power shortages and falling global metal prices.The rand traded at 12.3952 per dollar in late afternoon trade yesterday, strengthening from 12.4506 before the rates announcement. It has declined 6.7% against the US currency this year.Economists.co.za economist Mike Schussler said: "The rate increase was pretty much expected . The Reserve Bank has to fight inflation and you can't have low interest rates forever." ..