JOHANNESBURG - The South African Reserve Bank has hiked the interest rate by 25 basis points.
The hike takes the repo rate to 7.25%.
South African Reserve Bank Governor Lesetja Kganyago said the decision was unanimous.
The prime lending rate now rises to 10.75%.
"A few months back, it seemed that the fuel-price shock might be unwinding, but now it has intensified.
"We are also seeing global rates moving higher. We have taken a measured approach to rate setting, in conditions of high uncertainty, but we remain focused on our price-stability mandate. It is crucial that inflation reverts to 3% as the current shock fades, and we take responsibility for delivering that outcome," Kganyago said.