South Africa’s central bank has raised interest rates, a day after a similar move by Turkey.
South Africa’s Reserve Bank surprised observers by boosting its main interest rate to 5.5% from 5%.
Bank governor, Gill Marcus said “the depreciation of the rand exchange rate” was the primary cause of the rate rise.
She added that the global financial crisis was in a “new phase” and was “creating new challenges for emerging market economies”.
The rand – South Africa’s currency – has been under pressure recently, but the bank had still been expected to leave rates on hold.
