South Africa raises lending rate to 6.75 percent in tight call

South African Reserve Bank Governor Lesetja Kganyago speaks at IMFC press conference. [Photo: Reuters]

PRETORIA- South Africa’s central bank increased its benchmark lending rate by 25 basis points to 6.75 percent on Thursday in a close decision, saying the longer term inflation outlook remained elevated and that it could not risk waiting until later to act.

In a poll taken by Reuters last week, 16 of 26 economists said the South African Reserve Bank (SARB) would keep its repo rate at 6.50 percent while the rest opted for a 25 basis-point hike.