3. It is a tiny number with a heavy shadow.
In this episode of Number of the Day, Gareth Edwards and Francis Herd unpack why South Africa could still face as many as three interest rate hikes this year if the global oil shock keeps feeding through into inflation, fuel prices and household costs.
The South African Reserve Bank held rates on 26 March, leaving the repo rate at 6.75% and the prime lending rate at 10.25%. But that hold came with a warning. Policymakers flagged upside inflation risks and outlined tougher scenarios where higher rates may still be needed later this year if the conflict-driven oil shock lasts longer and the rand remains under pressure.
The episode traces the sharp turn in expectations. Not long ago, the conversation was about possible relief for consumers. Now the question is whether a year that looked softer could become another year of repayments biting harder, budgets tightening further and cost-of-living pressure refusing to let go.
Number of the Day: 3
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