Independent Analyst Elize Kruger says the South African (SA) Reserve Bank is likely to increase interest rates slightly by a quarter of a percent when it announces its rate decision on Thursday, as inflationary pressures continue to rise.
Her comments follow the latest data released by Statistics SA which shows that inflation rose from 4.5% in May to 5% in June 2026.
The data indicates that the biggest contributor to inflation came from higher fuel prices, as well as higher rental prices.
“If we think about the Monetary Policy Committee (MPC) meeting on Thursday, a figure of 5% would be an uncomfortable figure for the Reserve Bank to consider given the 3% inflation target with a 1% tolerance band so I do believe that they will probably remain on the conservative side by hiking interest rates by 25 basis points and there after sit put and watch what the impact would be.”
—SABC—
