South Africa's biggest interest rate hike in 20 years

The South African Central Bank made a decision that surprised the financial markets by realizing the highest interest rate increase in the last 20 years.

Central Bank Governor Lesetja Kganyago announced on Thursday that the monetary policy board has raised the policy rate from 4.75% to 5.5 percent. This increase was recorded as the highest increase since September 2002.

Three of the five committee members who took the decision to increase interest rates voted for a 75 basis point increase while one member voted for a 100 basis point increase and the last member voted for a 50 basis point increase.