JOHANNESBURG - It’s a week of reckoning for interest rates.
Economists are weighing whether the South African Reserve Bank will raise interest rates, as central banks around the world respond to persistent inflationary pressures.
Last week, the US Federal Reserve raised its policy rate by 25 basis points, marking its first increase in three years.
READ: US stocks fall, dollar gains after Fed lifts interest rates
The decision, together with elevated oil prices and their impact on inflation, has strengthened the case for further rate hikes.
South Africa’s latest inflation data is expected ahead of the Reserve Bank’s Monetary Policy Committee announcement.
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Annual inflation eased to 4.3 percent in July, from a two-year high of 5 percent in June.
However, both figures remain above the Reserve Bank’s 3 percent inflation target.
The current prime lending rate in South Africa is 10.5 percent, affecting consumers paying off home loans and vehicle finance.