The South African Reserve Bank SARB has indicated that in the worst-case scenario, South Africans may see three more interest rate hikes this year.
This scenario accounts for higher food inflation on the back of higher fuel prices, elevated fertilizer costs, an extended blockade in the Strait of Hormuz and adverse weather patterns which threaten crop production.
The bank has decided to increase rates by 0.25 , which takes the policy rate to 7 and the prime lending rate to 10.5.
