JOHANNESBURG - Jumping oil prices have raised fears of interest rate hikes.
South Africans have seen interest rates come down significantly since the end of 2024 with the Reserve Bank recently pausing rates. Indebted consumers were hoping for one or two more cuts.
But now they may be hit by a higher borrowing costs. The Reserve Bank is targeting inflation of just 3 percent.
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But higher oil prices mean higher costs for fuel and other goods.
If inflation is higher than what the Reserve Bank wants it to be the bank might move to curb inflation through interest rate hikes.
FNB says the Reserve Bank is likely to take a wait and see approach in this month's meeting but the hikes may come in the future