The Monetary Policy Committee of the Reserve Bank took an aggressive rate, raising interest rates on loans by 50 basis points on Thursday.
The decision will be the repo rate, at which the Reserve Bank provides short-term money to local banks, up to 4.75%.
The head of the Reserve Bank Lesya Kganyago says that despite the increase, monetary policy in the country remains favorable. The bank revised its growth forecast to 1.7% from 2%.
Kganyago says the bank needed to act quickly because of expectations of higher inflation until it was too late.