South Africa’s central bank raised its key interest rate by 25 basis points to 7% on Thursday, saying the decision was aimed at managing risks and ensuring that inflation returns to target. The majority of economists polled by Reuters had expected a 25-basis-point increase in the policy rate, after inflation accelerated sharply in April. Annual inflation was 4.0% in April, up from 3.1% in March, driven mainly by fuel price rises triggered by the US-Israel war against Iran. The South African Reserve Bank targets inflation of 3% with a tolerance band of 1 percentage point either side.
