# Rand trades weaker post SARB interest rate hike

> The South African Reserve Bank raised its repo rate by 25 basis points to 4%, lifting the prime lending rate to 7.5%. It also raised its 2022 headline inflation forecast to 4.9% from 4.3%. The rand softened after the decision, with moves also guided by US data.

- Date: 2022-01-27 · published 2022-01-27T12:00:00.000Z
- Category: macro · region South Africa · magnitude medium
- Page: https://feedsoft.ai/events/43435-rand-trades-weaker-post-sarb-interest-rate-hike
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Higher domestic rates raise borrowing costs for South African feed and livestock operators, and the higher inflation outlook points to continued tightening.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- ig.com: https://www.ig.com/za/news-and-trade-ideas/rand-trades-weaker-post-sarb-interest-rate-hike-220127

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