The prime rate will rise by 0.5 percentage points to 11 percent after the South African Reserve Bank opted on Thursday to raise the repo rate - at which it lends money to commercial banks - from 7 to 7.5 percent.Well that's economists for you, driving while only looking in the rear view.
Reserve Bank governor Tito Mboweni's announcement came as a surprise to economists and analysts, many of whom had expected interest rates to remain unchanged.
Only one of 16 economists surveyed by Bloomberg forecast a quarter-point increase, while the rest expected the rate to stay unchanged.
08 June 2006
Rates up 0.5%!!!
Tito Mboweni has raised interest rates 0.5% way above what people were expecting: