# South Africa’s rate hike leaves uncertainty over the rand

> The South African Reserve Bank raised its repo rate by 25 basis points to 3.75% from a record low, the first step in unwinding pandemic-era cuts. The vote split 3-2, and the bank raised its 2021 and 2022 inflation forecasts. Governor Kganyago flagged elevated oil and energy prices as an upside inflation risk.

- Date: 2021-11-19 · published 2021-11-19T12:00:00.000Z
- Category: macro · region South Africa · magnitude medium
- Page: https://feedsoft.ai/events/44348-south-africa-s-rate-hike-leaves-uncertainty-over-the-rand
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Higher South African rates support the rand by attracting yield-seeking capital, which lowers the local cost of dollar-priced feed imports. The split vote adds uncertainty about the pace of further hikes.

## Read by commodity

- USDZAR: bearish ▼

## Sources

- cnbc.com: https://www.cnbc.com/2021/11/19/south-africas-rate-hike-leaves-uncertainty-over-the-rand.html

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