Another 75 basis point hike possible next week

Another 75 basis point repo rate increase could be on the cards for next week, due to a weakening rand and aggressive global monetary policy tightening, as well as less currency support from the country’s current account. The Bureau for Economic Research (BER) at Stellenbosch University changed its expectation that the repo rate will increase by 50 basis points based on these factors, and also quote deputy governor of the South African Reserve Bank (Sarb), Dr Rashad Cassim, who said last week that the Sarb also considers the level of the interest rate relative to what is seen as the…