South Africa Central Bank Raises Rates to 5.5 Percent

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.

via BBC News – South Africa raises interest rates

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