Kganyago signals South Africa could hike rates again this month

Polity Audio Articles · Jul 1, 2026 · 2m

Kganyago signals South Africa could hike rates again this month South African Reserve Bank Governor Lesetja Kganyago said inflation expectations have risen above the central bank's 3% target, justifying the May interest-rate increase and signalling further tightening may be needed when policymakers meet later this month. The central bank raised rates in May for the first time in three years, lifting them by 25 basis points to 7% to prevent an oil shock caused by the Iran war from spilling into lasting inflation. "The inflation expectations have risen, they are above our target and that is the…