Giant rate hike looms even as inflation slows.

Worries over unanchored inflation expectations and increased depreciation pressure on the rand will probably see the South African Reserve Bank raise its key rate for a sixth straight meeting, said Sanisha Packirisamy, an economist at Momentum Investments.

Governor Lesetja Kganyago said in an interview September 8 that the central bank must do whatever it takes to ensure price growth is under control and on a downward trajectory toward the 4.5% midpoint of the monetary policy committee’s inflation-targeting range. Inflation has been above 4.5% since April 2021.