Governor of the South African Reserve Bank, Lesetja Kganyago. The Sarb's Monetary Policy Committee (MPC) will announce its monetary policy decision on Thursday after inflation rose to a 2-year high in June.
The surprise jump in inflation to a two-year high has intensified pressure on the South African Reserve Bank (Sarb) ahead of its closely watched Monetary Policy Committee (MPC) meeting on Thursday.
Economists are increasingly expecting policymakers to prioritise containing inflation despite mounting risks to economic growth, and adjust the benchmark policy rate after the Sarb increased by 25 basis points to 7% in May.
Statistics South Africa (Stats SA) on Wednesday reported that annual consumer inflation accelerated to 5% in June, up from 4.5% in May and above market expectations of 4.7%.
The reading marked the fourth consecutive monthly increase and the highest inflation rate since June 2024, when inflation reached 5.1%.
