Johannesburg- The Governor of the South African Reserve Bank, Lesetja Kganyago is set to deliver his speech pertaining to the interest rates in the country later today.
The bank said concerning factors include persistent global supply chain disruptions and port congestion which have resulted in higher shipping costs.
“Global oil prices remain elevated on the back of supply and demand imbalances.”
It added that costs pressures have pushed producer inflation sharply higher in most countries.
Speaking to Sunday World, economist Sifiso Skenjana said that fuel turned to make a bigger contribution to the inflation with about 25%.
“The SARB might consider increasing the interest rate, the higher the interest rate in the developed market it means the interest for South Africa decreases and we might see the rand weakening. Increasing our interest rate will mean we are able to maintain the level of investor interest in our country.”
“We, therefore, can expect that the MPC members might consider an increase.It can be elevated to above 5% from 4.5%
Skenjana added that taking it too high is not a good idea.
“South African households are still pressured, there is high unemployment. There has been a battle in the economic growth.
“It is going to put pressure on pressure, South Africa has been under lockdown for over 600 days now and many citizens are are pressured, so this will only make things worse.
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