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S. Africa's Central Bank Delivers 50bp Rate Hike, Wrong-Footing Consensus

SARB

Governor Kganyago says that South African Reserve Bank decided to increase interest rates by 50bp, providing a hawkish surprise..

  • The market was priced for 15-17bp worth of tightening, while the unanimous consensus call was for a 25bp rate increase.
  • The Governor said that three members voted for a 50bp rate increase and two backed a 25bp hike.
  • Spot USD/ZAR extended losses after the rate announcement, while South African bank stocks rose.

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