Contrary to the consensus view expressed by many economists that the repo rate would be raised by only 25 basis points (bsp) on 30 March, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) decided by a 3:2 vote to raise interest rates again by 50 bsp.
In commenting on the decision to increase the repo rate, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says the MPC majority view sees the risks to inflation on the upside – shaped by both domestic and global factors.