Economists predict another rate hike as the rand strengthens against the greenback.
South Africans could face further interest rate hikes this year, with economists increasingly expecting the South African Reserve Bank (SARB) to raise rates again in July and potentially once more before the end of the year.
The expectations come as the rand strengthens on the back of the 25bps rate hike earlier this month and inflation risks remain elevated following higher oil prices and ongoing tensions in the Middle East.
SARB cited inflation risks linked to the prolonged conflict in the Middle East, higher fuel and food prices, and the possibility of broader price increases across the economy.
Inflation hit 4% in April as the price of fuel skyrocketed, up from 3.1% - a figure more closely aligned with the central bank’s target of 3%.
