South Africa’s central bank suggested another interest-rate increase could be warranted this year because of the fallout from the Iran war, while highlighting risks the conflict poses to financial stability.
“The South African Reserve Bank’s Quarterly Projection Model, which pointed to rate cuts in 2026 prior to the Middle East conflict, now suggests another rate increase in 2026 following the 25-basis point increase on May 28,” the bank said in its biannual Financial Stability Review released on Wednesday in Pretoria.
Sam Busa