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South African central bank likely to maintain high interest rates amid rising inflation

EditorAmbhini Aishwarya
Published 20/09/2023, 10:00

The South African central bank is poised to keep interest rates high for an extended period due to a surge in the inflation rate, in line with previous forecasts. This decision comes in response to the primary consumer-price index for August, which recorded a 4.8% increase compared to the same period last year, as reported by Statistics South Africa, a Pretoria-based agency on Wednesday.

This inflation rate marks a slight uptick from the 4.7% rise observed in the previous month. The current inflation growth aligns with the median forecast made by a group of 23 economists in a survey. The sustained rise in inflation and the corresponding monetary policy response underscore the economic challenges that South Africa continues to grapple with.

The central bank's stance on maintaining high interest rates is seen as an attempt to curb inflationary pressures and stabilize the economy. However, it also signals potential headwinds for businesses and consumers who will face higher borrowing costs in an already strained economic environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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