Download the March 2023 in review Economic and Market Overview

The Monetary Policy Committee (MPC) of the South African Reserve Bank surprised market participants with a 0.5% increase in the official lending rate. This was 0.25% higher than expected as the bank cited concerns about the persistence of inflation well above their 4.5% target. Governor Lesetja Kganyago said that guiding inflation back towards the mid-point of the target band would reduce the economic costs of high inflation and enable lower interest rates

in the future.

The South African Reserve Bank was not alone in raising interest rates in March. The US Federal Reserve (0.25%) and the European Central Bank (0.50%) also decided that the back of rising inflation has not been broken yet. Read more