But at current levels of the repo rate, it is an option. Can 25 basis points make an impact? Perhaps not on its own, but seen in the context of a longer cycle, it could be part of a cumulative increase, particularly should the MPC wish to see a smoother and more gradual adjustment.
The disadvantage of such a strategy, however, is that it could mean that we “fall behind the curve”, which may require even stronger moves later on. A more moderate approach, on the other hand, could allow for easier adjustment to changing circumstances, and a less volatile interest rate environment in the short to medium term.