Inflation woes prompt Reserve Bank to hike rates

South Africa’s Reserve Bank has raised interest rates by 25 basis points, as inflation remains at the higher end of the Bank’s 3%-6% target band. The move takes the repo rate to 4.25%, and marks the monetary policy committee’s third consecutive rate hike. The Bank has also ramped up its headline consumer price inflation forecast to 5.8% for 2022 from 4.9% previously. Business Day TV unpacked the decision with Jeff Schultz, Senior Economist at BNP Paribas South Africa.