Africa-Press – South-Africa. Traders raised bets that South Africa’s central bank will continue its interest-rate hiking cycle next month after inflation unexpectedly quickened in March.
The central bank has delivered 425 basis points of tightening since November 2021, with March’s bigger-than-expected 50 basis point move surprising financial markets. The MPC believes it has taken the right decisions to guide price growth back to the midpoint of its target range “but this cannot preclude further steps if inflation and inflation expectations continue to surprise higher,” Governor Lesetja Kganyago said in a speech this month.
Price-growth in South Africa is being stoked by currency weakness, severe power rationing and logistics-network constraints that are adding to costs of doing business and sapping the country’s economic growth prospects.
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