SA Reserve Bank increases repo rate by 75 basis points to 5.50%

SA Reserve Bank governor Lesetja Kganyago will announce the repo rate on Thursday afternoon.

In May, the central bank hiked the repo rate by 50 basis points, the biggest margin in more than five years, to 4.75%, as food and fuel prices pushed consumer prices to the upper-end of  the target range.

The higher repo rate means under-pressure consumers with credit cards, home loans and car financing will pay more to service their debts as they grapple with higher fuel and food prices. However, curbing rising inflation is crucial to cushion salaries of consumers.

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