# Why the SA Reserve Bank hike took the market by surprise

> The SARB announced a 50 basis point repo rate increase on 30 March, 25 basis points more than the market expected. Inflation for January and February came in above forecasts, driven by fuel, electricity and food prices. Economists described the bank as having returned to orthodox policy.

- Date: 2023-04-01 · published 2023-04-01T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/37168-why-the-sa-reserve-bank-hike-took-the-market-by-surprise
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Tighter rates support the rand and lower imported feed costs for South African buyers, while elevated food inflation points to firm domestic demand for animal protein.

## Read by commodity

- USDZAR: bearish ▼

## Sources

- dailyinvestor.com: https://dailyinvestor.com/finance/13272/why-the-sa-reserve-bank-hike-took-the-market-by-surprise/

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