20°C / 22°C
  • Mon
  • 27°C
  • 15°C
  • Tue
  • 27°C
  • 16°C
  • Wed
  • 27°C
  • 16°C
  • Thu
  • 21°C
  • 14°C
  • Fri
  • 24°C
  • 13°C
  • Mon
  • 21°C
  • 15°C
  • Tue
  • 22°C
  • 16°C
  • Wed
  • 25°C
  • 16°C
  • Thu
  • 28°C
  • 17°C
  • Fri
  • 31°C
  • 20°C
  • Mon
  • 29°C
  • 16°C
  • Tue
  • 29°C
  • 17°C
  • Wed
  • 30°C
  • 18°C
  • Thu
  • 25°C
  • 17°C
  • Fri
  • 25°C
  • 15°C
  • Sun
  • 29°C
  • 12°C
  • Mon
  • 27°C
  • 16°C
  • Tue
  • 26°C
  • 15°C
  • Wed
  • 27°C
  • 15°C
  • Thu
  • 23°C
  • 14°C
  • Mon
  • 26°C
  • 21°C
  • Tue
  • 28°C
  • 22°C
  • Wed
  • 24°C
  • 21°C
  • Thu
  • 22°C
  • 19°C
  • Fri
  • 24°C
  • 19°C
  • Mon
  • 21°C
  • 15°C
  • Tue
  • 19°C
  • 16°C
  • Wed
  • 20°C
  • 16°C
  • Thu
  • 22°C
  • 16°C
  • Fri
  • 25°C
  • 18°C
  • Mon
  • 30°C
  • 13°C
  • Tue
  • 23°C
  • 14°C
  • Wed
  • 29°C
  • 13°C
  • Thu
  • 36°C
  • 16°C
  • Fri
  • 39°C
  • 20°C
  • Mon
  • 24°C
  • 16°C
  • Tue
  • 25°C
  • 15°C
  • Wed
  • 21°C
  • 16°C
  • Thu
  • 25°C
  • 16°C
  • Mon
  • 30°C
  • 18°C
  • Tue
  • 29°C
  • 18°C
  • Wed
  • 31°C
  • 19°C
  • Thu
  • 26°C
  • 17°C
  • Fri
  • 26°C
  • 16°C
  • Mon
  • 30°C
  • 13°C
  • Tue
  • 21°C
  • 15°C
  • Wed
  • 26°C
  • 14°C
  • Thu
  • 24°C
  • 12°C
  • Fri
  • 26°C
  • 14°C
  • Mon
  • 28°C
  • 15°C
  • Tue
  • 31°C
  • 14°C
  • Wed
  • 28°C
  • 16°C
  • Thu
  • 24°C
  • 16°C
  • Fri
  • 27°C
  • 14°C
  • Mon
  • 20°C
  • 11°C
  • Tue
  • 17°C
  • 15°C
  • Wed
  • 19°C
  • 15°C
  • Thu
  • 21°C
  • 15°C
  • Fri
  • 23°C
  • 17°C

Eskom tariff spike could lead to interest rate hike

Lesetja Kganyago says Eskom’s request for an increase of 12,6 percent could have impact on inflation.

FILE: Eskom has requested for a further tariff increase. Picture: Reinart Toerien/EWN.

JOHANNESBURG - Eskom's request for a further tariff increase could put pressure on inflation and lead to an increase in the interest rate, Reserve Bank Governor Lesetja Kganyago said on Thursday.

He announced this afternoon that the repo rate would remain unchanged at 5,75 percent.

Kganyago added the Monetary Policy Committee (MPC) may have no choice but to change its stance on the repo rate.

He says Eskom's request for a further tariff hike of 12,6 percent could have a major effect on inflation.

"The direct and indirect effects of such an increase could increase average inflation by around of 0,5 percent over a year."

The governor says this combined with pressure such as the vulnerable rand and high wage settlements could leave the MPC with no choice.

"The deteriorating inflation outlook suggests that these unchanged stunts cannot be maintained indefinitely."

Kganyago warned South Africans that volatile conditions could force the MPC to hike rates at its next meeting.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus