JOHANNESBURG - The Monetary Policy Committee is expected to announce its interest rate decision on Thursday.
The markets are increasingly split over whether the central bank will press ahead with a cut.
While inflation earlier in the year created space for easing, the Middle East War has injected fresh uncertainty into the outlook.
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South Africa faces a sharp jump in fuel prices in April, and analysts warn that sustained high oil prices could shift the country from fuel-price deflation back into fuel-driven inflation.
Economists said this may make the MPC more cautious at a time when inflation risks are clearly tilting upward.
Analysts argue that despite inflation expectations improving, the surge in energy-related costs from fuel, electricity and transport gives the MPC reason to hold off until the outlook becomes clearer.