Load shedding to blame for repo rate increase of 25 basis points

The repo rate increasing by 25 basis points can mostly be blamed on the near-term risk of load shedding to the economy. The South African Reserve Bank’s (Sarb) Monetary Policy Committee (MPC) opted for a 25 basis points rate increase today, against the consensus forecast of a 50 basis points increase, with the Sarb also making notable downward revisions to its real gross domestic product (GDP) growth forecast for the next three years, flagging load shedding as a key near-term risk to the economy. Three members voted for the 25 basis points increase, while two preferred a 50 basis points…

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