Interest rates | Inflation still high, rate hike expected

The Reserve Bank may raise interest rates by half a percentage point tomorrow with the latest inflation figures showing price rises remain stubbornly high. The latest figures indicate growing food and transport costs as the biggest drivers. One analyst says because higher fuel prices are now impacting other costs, the Reserve Bank will act more aggressively. #DStv403

JOHANNESBURG - The Reserve Bank may raise interest rates by half a percentage point on Thursday with the latest inflation figures showing price rises remain stubbornly high.

Statistics South Africa says consumer inflation was unchanged at 5.9 percent in April.

READ: Reserve Bank hikes repo rate by 25 basis points

A higher inflation forecast supports the case for the bank to raise interest rates.

The latest figures indicate growing food and transport costs as the biggest drivers.

Source
eNCA

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