The implications of the 75 basis points(bp) hike on Small Businesses
In an effort to curb swelling inflation which currently stands at 6.9%, the South African Reserve Bank (SARB) has decided to increase interest rates by 75bp bringing the repo rate to 7% and the prime lending rate to 10.50% effective 25 November 2022. This decision by the SARB is expected to carry well into 2023 until the inflation rate is under control. The Governor of the South African Reserve Bank (SARB), Lesetja Kganyago warned of high inflation rate and slow economic growth, thus they are under pressure to hike rates and to protect the rand’s value.