The rand keeps strengthening against major currencies
The rand is now around 15.97 to the dollar, 22.80 to the pound and 17.31 to the euro.
Governor Lesetja Kganyago explained yesterday that inflation needed to be kept in check and the bank had no choice but to increase the rate.
The local currency is now around 15.97 to the dollar, 22.80 to the pound and 17.31 to the euro.
Banks were among the hardest hit last year when President Jacob Zuma fired Finance Minister Nhlanhla Nene.
On the JSE, financials lost more than 10 percent at the time, with the major banks under pressure.
Since then reinstated Finance Minister Pravin Gordhan has promised to steer the local economy and promote growth.
Reports say investors have turned their attention to banking and financial shares after yesterday's announcement.
The financial sector has therefore finished stronger on the JSE this afternoon and the rand has strengthened substantially against the dollar and pound.
However, the local currency still has a long way to go in regaining ground lost due to international pressures and political factors back home.