South Africa Raises Key Rate to 9.5 Percent as Inflation Exceeds Target

(Bloomberg) -- South Africa's central bank increased
its benchmark rate by half a point on concern that rising energy
and food prices will push up other costs, threatening to keep
inflation above the target range.

The Reserve Bank raised the repurchase rate to 9.5 percent,
the first increase since Dec. 7, Governor Tito Mboweni said in a
televised speech from Pretoria today. That was in line with the
forecasts of 20 of 25 economists surveyed by Bloomberg.


Read more at Bloomberg Emerging Markets News

South African Annual Credit Growth Unexpectedly Accelerates to 25 Percent

(Bloomberg) -- South African credit growth
unexpectedly accelerated to an annual 25.1 percent in April,
adding to pressure on inflation and increasing the likelihood the
central bank will raise interest rates next week.

Growth in borrowing by households and companies accelerated
from 24.2 percent in March, the Pretoria-based central bank said
on its Web site today. Credit was expected to rise 24 percent,
according to the median estimate of 10 economists surveyed by
Bloomberg.


Read more at Bloomberg Emerging Markets News