South Africa Central Bank Raises Key Rate To 5.5%

South Africa’s central bank raised its benchmark interest rate by three-quarters of a percentage point to 5.5 percent the steepest hike in a decade. <br />The move announced a day after South Africa reported a 13-year high in inflation was the fourth rate hike in a row, as the South African Reserve Bank voiced concerns over high inflation and weak economic growth. <br />Governor Lesetja Kganyago says the central bank decided to increase the repurchase rate by 75 basis points to 5.50 percent per year with effect from Friday. <br />Kganyago says the rate increase aimed to help bring inflation back down to the bank’s target band of three to six percent.