Will inflation risks force Bank’s hand?

Consumer inflation drifted up to its highest level since May in September and recorded its fifth month out of line with the 4.5% midpoint of the SA Reserve Bank’s target range. SA is facing another steep fuel price hike in November, which could take petrol prices to record highs. With inflation risks mounting, economists expect the Reserve Bank’s monetary policy committee to sharpen its hawkish tone, if not outright move to hike rates from the current record low of 3.5%, at its next meeting in November.