Reserve Bank Raises Repo Rate 50bps

Mboweni raises repo rate

South Africa's central bank raised its key repo rate by 50 basis points to 10.5 percent on Thursday, above expectations, as inflation remains above the target range and despite a slowdown in some economic indicators.

The half percentage point rise is the third this year and brings to 350 basis points the increases since June last year to tame rising inflation pressures, partly driven by food and fuel costs, and robust consumer spending.

Only seven of 19 economists polled by Reuters last week forecast rates would rise on Thursday.