The Reserve Bank has after a meeting of its Monetary Policy Committee decided to increase the repo rate by 50 basis points. The bank revised its headline inflation forecast to 5.9 percent from 5.8. Reserve Bank Governor Lesetja Kganyago defended the MPC's decision to hike rates by 50 basis points by arguing that the bank cannot act when inflationary pressures are out of control. The increase also comes on the back of increasing fuel and food prices with fuel expected to increase by almost R2 next month. To discuss the impact of increasing repo rate and cost of living on ordinary citizens Elvis Presslin spoke to Mukhethwa Nemanashi.