Business was thankful that the repo rate increase was only 50 basis points and not 100 basis points, the South African Chamber of Commerce and Industry (SACCI) said on Thursday.

But it said that while the decision demonstrated the Reserve Bank's determination about combating inflation, the increase would add to the woes of consumers and business alike.

"Given the dominance of external factors in the current inflation spiral, it remains to be seen whether the increase will have any affect other than to curb inflationary expectations. Faced with further increases in the price of fuel, energy and utilities, the repo rate increase will have a negative impact on business," it cautioned.

I-Net Bridge