Lesetja Kganyago, Governor of the South African Reserve Bank, has announced that the repo rate will rise from 6.5% to 6.75%. The decision was not made lightly, Kganyago said, as three of the bank's monetary policy committee preferred an unchanged stance while three others voted for a 25 basis point hike.

Changes to the repo rate, which is the benchmark interest rate at which the central bank lends money to other banks, affect the prime lending rate - the starting point from which banks calculate interest rates for their clients.

Over the past few months, South Africans have dealt with several huge petrol price increases, a weak Rand and a rising cost of living