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Global losses from climate and weather-related disasters amounted to US$329 billion in 2021, up from $297 billion in 2020, according to the 2021 Weather, Climate and Catastrophe Insight report by leading global financial services company Aon. While losses were up from 2020, the number of notable disaster events slightly decreased, demonstrating the heightened costliness and severity of these events. Of the 2021 losses, only 38% were covered by insurance, the report notes. South Africa experienced three notable disaster events in

2021: Cyclone Eloise in January (over $90 million), floods ($75 million) and wildfires in the Western Cape in April (over $100 million).

At its Monetary Policy Committee (MPC) meeting on Thursday this week, the South African Reserve Bank raised the repo rate by 25 basis points to

4%, citing inflationary pressures and a weaker rand. This puts banks’ prime lending rate at 7.5%, up from 7.25%. Reuters reports the decision was split 4-1 between members of the MPC.

The move was in line with a Reuters poll published last week and comes after a similar hike in November.

“Given the expected trajectory for headline inflation and upside risks, the committee believes a gradual rise in the repo rate will be sufficient to keep inflation expectations well anchored and moderate the future path of interest rates,” the SARB said in a statement.