MPC Announcement: January 2023
SARB Governor Lesetja Kganyago delivered an MPC announcement on January 26. It was decided that the repurchase (repo) rate be raised to 7.25%.
The 26 January MPC’s decision to raise the repo rate by 25bps saw a flattening in the FRA curve, as the market priced in a 48% probability of a 50bps rate hike. We expected a close call between a 25/50bps rate hike and as it turned out, three members favoured a 25bps rate hike and two members 50bps.