South Africa Money and Credit Market Trends & Forecasts — February 2022 Report

In the near term, the headline inflation outlook has increased well above the mid-point of the inflation target band, and is expected to return to close to the mid-point in the fourth quarter of 2022. Some risks to the inflation outlook, like food and fuel, have been realised, and other risks, such as currency volatility and capital flow reversals, have become more pronounced. Against this backdrop, the MPC decided to increase the repurchase rate by 25 basis points to 4% per year, with effect from the 28th of January 2022. This followed on a 25bp increases effected in November 2021.