JOHANNESBURG - Inflation data for July may have been a nice economic surprise.
But RMB has warned that higher inflation is still on the horizon, and the Reserve Bank may raise interest rates once more to combat it.
Inflation had reached a two-year high in June due mostly to higher fuel costs linked to the war in the Middle East.
READ: Inflation drops to 4.3% in July, lowest in five months
Earlier this year, the Bank raised interest rates as a pre-emptive move to deal with war inflation.
But at the last meeting in July, the Reserve Bank's Monetary Policy Committee kept interest rates unchanged.
RMB's Chief Economist, Isaah Mhlanga, says the better inflation figure does not rule out further interest-rate hikes.