SA Reserve Bank (Sarb) Governor, Lesetja Kganyago. Escalating conflict in the Persian Gulf and rising oil prices have prompted economists to warn that the South African Reserve Bank may raise interest rates again later this week to contain inflationary risks.
Escalating conflict in the Persian Gulf and a renewed surge in global oil prices have increased the likelihood that the South African Reserve Bank (Sarb) could raise interest rates again later this week as policymakers seek to contain inflationary pressures.
The Monetary Policy Committee (MPC) is scheduled to announce its next interest rate decision this Thursday on July 23, just one day after Statistics South Africa (StatsSA) releases the June consumer inflation data.
Economists say the renewed conflict around the Strait of Hormuz has significantly altered the inflation outlook after markets had previously anticipated lower oil prices and a stronger rand following the ceasefire announced earlier this year.
The Reserve Bank raised the repo rate by 25 basis points in May, lifting the prime lending rate to 10.5%.
