Overview
- Governor Lesetja Kganyago said policymakers will keep interest-rate options open as war-driven supply shocks cloud the inflation outlook.
- The central bank reaffirmed its 3% inflation goal and said its focus is on stopping knock-on effects like faster wage and retail price increases.
- Petrol and diesel costs jumped in early May after the conflict involving Iran disrupted energy supplies, lifting transport and farm running costs for households and businesses.
- Headline inflation ticked up to 3.1% in April from 3.0% in March, and many economists now expect it to move above 4% as higher fuel prices feed through.
- The policy rate has held at 6.75% in recent meetings and the MPC will reassess later this month, with some private analysts forecasting back-to-back quarter-point hikes.