Economists expect 50 basis point rate hike this week

JOHANNESBURG - Bad news for cash-strapped consumers as another 50 basis point hike is on the cards.

The central bank's Monetary Policy Committee meets on Thursday to discuss interest rates.

READ: Another interest rate hike expected on Thursday

The repurchase rate is currently sitting at 7.75 percent, with the interest rate at 11.25 percent.

But with the rand's weak performance, economists are expecting a substantial hike.

READ: Interest Rate Hikes | Pressure on consumers increases

"Roughly three weeks ago, before we saw the tand coming under the renewed and sustained pressure we have seen the last week or so, we thought that the Reserve Bank will hike with 25 basis points.

"Given the extent in the decline of the rand we are seeing of late, not just against the US dollar, but also against the basket of currencies from our major trading partners," said the Bureau for Economic Research's Hugo Pienaar.

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"And the fact that it was not just Russia, the US-SA diplomatic spat that pushed the rand weaker, but the fact that it did not strengthen last week after those diplomatic rows died down somewhat, the tand has remained under notable pressure.

"And we think, as result of that, the Reserve Bank, the Monetary Policy Committee, will probably go up by 50 basis point this week."