JOHANNESBURG - Prospects for interest rate cuts in South Africa are dimming.
The global oil price remains high due to tensions in the Middle East, increasing inflation risks.
The South African Reserve Bank left the repo rate unchanged at 6.75 percent in March, despite inflation hitting its 3 percent target.
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Petrol rose by R3 a litre this month and diesel by around R7, despite government fuel-levy relief.
Mid-month data from the Central Energy Fund shows under-recoveries of roughly R3 for petrol and R10 for diesel, pointing to further increases.
With the inflation risks of higher transport and food costs the Reserve Bank is unlikely to cut rates.