JOHANNESBURG - Bets are rising that the South African Reserve Bank will hike interest rates this week.
This is as oil prices are climbing again on concerns that the war in the Middle East could widen.
Brent Crude oil climbed by more than 3% today to its highest level in more than a month.
Iranian allies the Houthis have threatened to impose a blockade on ships from Saudi Arabia.
READ | Reserve Bank to decide on interest rate this week
This could create a new oil supply blockage in the Red Sea.
Higher oil prices have already lifted inflation well above the Reserve Bank's target range of 3%.
In response, the Bank hiked rates by 25 basis points or a quarter of a percentage point in May.
Whilst predictions are divided, economists from Investec, Nedbank and FNB expect another increase when the bank announces its decision on Thursday.