South Africa raises lending rate to 6.75 percent in tight call

South African Reserve Bank Governor Lesetja Kganyago speaks at IMFC press conference during the IMF/World Bank spring meeting in Washington, U.S., April 21, 2018. REUTERS/Yuri Gripas

PRETORIA (Reuters) – South Africa’s central bank increased its benchmark lending rate by 25 basis points to 6.75 percent on Thursday in a close call, saying while near term inflation was trending lower the longer term outlook remained elevated.

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.