Browsing: SA economic development

• South African Reserve Bank administers “bitter medicine”, raises key rate to 8.25 percent to tackle inflation.
• Trading Economics states South Africa’s average food price inflation was 6.07 percent annually between 2009 and 2022.
• Within the last three months of 2022, South Africa’s economic development has stumbled below pre-pandemic levels.

South African Reserve Bank has raised the benchmark interest rate to 8.25 percent, a 14-year high as policymakers move to tackle escalating inflation. Borrowers are set for tough times as Governor Lesetja Kganyago administers “bitter medicine” on the economy in the face of worsening inflation.

Globally, economies have been tightening fiscal stance to contain inflation in step with US Federal Reserve move to increase rates to check the rising cost of living.

South African Reserve Bank forced to increase rate

Since utility Eskom resorted to power cuts, South Africa has been plunged into numerous economic disruptions. As a result, this is …