# South Africa lifts interest rates to 14-year high to fight inflation

> The South African Reserve Bank raised its policy rate by 50 basis points to 8.25%, a 14-year high, and lifted its inflation forecasts for this year and next. The rand hit a new all-time low, falling about 2% on the day. Some traders had bet on a larger 75 basis point hike.

- Date: 2023-05-25 · published 2023-05-25T12:00:00.000Z
- Category: macro · region South Africa · magnitude medium
- Page: https://feedsoft.ai/events/36247-south-africa-lifts-interest-rates-to-14-year-high-to-fight-inflation
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Higher South African rates slow domestic demand for feed and food, and the weaker rand raises the local cost of dollar-priced feed imports. Both factors affect South African buyers' purchasing of feed inputs.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/world/africa/south-africas-central-bank-lifts-key-rate-by-50-basis-points-2023-05-25/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.