JOHANNESBURG - Another rates hike is on the cards this week, this time it may be a substantial increase of 50 basis points.
It's largely due to the rand's free fall to record lows.
Economist Bonke Dumisa explained how the Monetary Policy Committee could arrive at that decision.
"When many of us say that the repo rate is definitely going to go up by anything between 25 to 50 basis points on Thursday, 25 May 2023, it is because we've been following the trend on how they do things."
"The key to their decision on Thursday however lies on what is going to be announced tomorrow at 10am on Wednesday 24 May 2023," he said.
"The latest inflation rate figures for April 2023 will be announced tomorrow, which I believe are not going to be really bad, if that is the case, well, we will expect the South African Reserve Bank to look at both sides of whether they must use 25 basis points or 50 basis points.
"However, if ever the inflation rate figures, the CPI tomorrow is seen to be going up again from the 7.1 percent, then they will definitely increase the repo rate by 50 basis points."