MPC Announcement: March 2022
SARB Governor Lesetja Kganyago delivered South Africa’s second MPC announcement of 2022 on 24 March. As expected, the repurchase (repo) rate was raised by 25bps to 4.25%.
SARB Governor Lesetja Kganyago announced an increase in interest rates from 4.00% to 4.25% on March 24 at 15h00 CAT.
In a unanimous decision, the MPC raised the repo rate by 25bps to 4.0% as expected. The interest rate path in the QPM is mild considering the latest inflation outlook, adding one 25bps rate hike in 2023. The tone of MPC statement, discussion in the Q&A and QPM interest rate forecast was dovish relative to market expectations embedded in the FRA curve. The BER’s inflation expectations survey revealed Inflation expectations remain contained in 1Q 22. Risks to the inflation forecast is to the upside.