South Africa Central Bank Warns of Higher Rate as CPI Risks Rise
This article is for subscribers only.
South Africa’s central bank gave its strongest indication yet that it will raise interest rates in coming months as higher energy costs and a weaker rand threaten the inflation target.
While the Monetary Policy Committee agreed to keep the benchmark repurchase rate unchanged at 5.75 percent, two of the six members favored an increase of 25 basis points, Governor Lesetja Kganyago told reporters on Thursday in the capital, Pretoria. All 26 economists surveyed by Bloomberg predicted the rate would stay on hold.