JOHANNESBURG - South African consumers are paying the price for Middle East fighting.
The oil price has risen above $80 per barrel and even flirted with $85 per barrel at one point.
A weaker Rand is making imported oil even more expensive here at home.
That may push up fuel prices and lead to more general price increases.
This weakens the case for an interest rate cut this month.
The Reserve Bank's Monetary Policy Committee meets later in the month to consider interest rates.
ALSO READ | Motorists could see more petrol increases in April
The bank's model had factored in two rate cuts this year, but these may now come later or not at all.
Economists have warned that oil prices may shoot up further.
A protracted war could mean the bank even considers hiking rates.
Since September 2024, South Africans have received one-and-half percentage points in terms of cumulative rate cuts.
The repo rate has been 6,75 percent since November last year.
The Reserve Bank announced no rate change in January.