There is growing tension between inflation risks and economic weakness in South Africa. With fuel prices climbing, the rand weakening, and global uncertainty refusing to settle, the pressure is building from every direction on businesses, households, and financial markets. Against that backdrop, the South African Reserve Bank’s Monetary Policy Committee (MPC) faces an increasingly difficult balancing act: let inflation run, and you risk losing credibility; raise rates, and you risk choking off what little growth the economy has left.Adriaan Pask, PSG Wealth’s CIO. Picture: PSG Wealth In this podcast, PSG Wealth’s chief investment officer (CIO) Adriaan Pask explores a classic central bank dilemma: do you raise interest rates into a weak economy, or accept a period of higher inflation and look for other levers? The discussion unpacks the current inflation and interest rate environment, including:What is meant by supply-driven inflation — and why this distinction matters. Whether hiking rates is the “right” response, and what alternatives policymakers have. What this means for investors.Listen to the podcast now:This article was sponsored by PSG Wealth.Affiliates of PSG Financial Services, which includes PSG Wealth, are authorised financial services providers. Visit the PSG website for more information.