South African Reserve Bank raises interest rate to 7%, warning that oil shocks, food inflation and global instability could drive prices higher

The announcement comes as the bank foresees lower global interest rates and a weaker outlook for the local economy

The South African Reserve Bank has warned of an upside risk to the inflation outlook

This was despite the central bank highlighting upside risks to the inflation outlook

A third consecutive interest rate cut will help stimulate the economy, but the central bank will also be cautious about inflation pressures

Global tourism has reached 96% of pre-pandemic levels; tails are up

This comes as inflation eased to 4.4% in August, below the midpoint of the Reserve Bank’s 3-6% target band

Better than expected inflation outcomes domestically and globally back the case for the central bank to cut the repo rate to 8%, economists said This content is restricted to…

Inflation is now expected to return to the Reserve Bank’s midpoint target at the end of 2025, later than previously forecast This content is restricted to registered users and…

Today’s monetary policy committee meeting comes in the wake of a surprise acceleration in South Africa’s annual inflation rate

David Fowkes, who was appointed as an adviser to the governors last December, has worked for the Reserve Bank since 2013

Governor Lesetja Kganyago suggested the central bank will look for the inflation rate to fall within its target before it administers relief This content is restricted to…

Central bank governor Lesetja Kganyago said the job of tackling inflation was not done yet

With interest rates at a 14-year high, many South Africans have depleted their emergency savings

Sticky inflation in major economies suggests that average interest rates will remain high and upside risks to the domestic inflation outlook remain

The Reserve Bank has already lifted rates 10 times since November 2021

The Reserve Bank governor had to defend interest rate hikes against criticism that they will do little to temper sticky inflation

Whatever hope was ignited among investors by the idea of a Ramaphosa presidency has mostly been snuffed out

Reserve Bank governor Lesetja Kganyago underlined the need for short-term pain in the interest of long-term gain

The rand strengthened ahead of Wednesday’s inflation data, but it still held above R19 against the dollar