Think Daily: SARB Increased the Repurchase Rate by 75 bp

  • Market Overview

The South African Monetary Policy Committee decided to increase the repurchase rate by 75 basis points to 7% per year, with effect from the 25th of November 2022, taking the repo rate to 7% and the prime interest rate to 10.5%. Mr Price (JO: MRPJ ) released disappointing interim results yesterday resulting in a more than 8% fall in its share price. In the local markets, the Top 40 closed the day up 0.43% and the Resources 10 sector went up by 0.6%, the Financial 15 went down by 0.43%, the Industrial 25 went up by 0.59% and lastly the South African Listed Property index was down 0.62%. The rand traded at R17.02 against the dollar , R20.64 against the pound , and R17.72 against the euro .

The South African Interest Rate chart (Source: Trading Economics)

Figure 1: The South African Interest Rate chart (Source: Trading Economics)

On the commodities front, Brent Crude oil is trading at $85.32 a barrel and WTI Crude oil is trading at $77.44 a barrel. Gold is currently trading at $1756.27. Platinum is now trading at $986.89 and lastly, the Palladium is at $1884.46. The oil markets remain cautious ahead of the European Union ban on Russian crude on December 5, as well as an OPEC+ meeting on December 4.

Across the globe, the United States markets will be closed as Americans celebrate Thanksgiving. The FTSE 100 was up 0.02%, the DAX was up 0.78% and the CAC40 was up 0.42%. In the Asian markets, Hang Seng is currently down 0.27%. European Central Bank policymakers agreed that the central bank should continue normalizing and tightening monetary policy to combat high inflation, even in the event of a shallow recession, the accounts of the central bank's October policy meeting showed. United Kingdom car production rose 7.4% to 69,524 units in October 2022 from a year ago.

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