Rate hike ‘dis­ap­point­ing’

The Sunday Independent - - METRO -

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.

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