Rate hike ‘disappointing’
GOVERNOR of the SA Reserve Bank Lesetja Kganyago announced in Pretoria this week that the bank would raise the repo rate to 6.75% from 6.5%.
The prime lending rate will now increase to 10.25%. Dr Andrew Golding, chief executive at the Pam Golding Property group, said it was “a tough call”, and a disappointing decision at this juncture of the year.
“With October’s inflation of 5.1% in line with expectations – slightly higher than September’s 4.9% yet still within the 3-6% target range – and with some relief in the fuel price expected in December, with a stronger rand and against the backdrop of a tepid economy, it would have made sense to hold the repo rate stable,” he said.