Key facts
- South Africa's central bank governor indicated policymakers are observing initial signs of second-round inflation effects.
- Underlying price pressures are building within the South African economy.
- The governor stressed that these conditions necessitate decisive policy action to manage inflation.
South Africa's central bank governor has indicated that policymakers are observing the initial signs of second-round inflation effects. This development coincides with a build-up of underlying price pressures within the economy. The governor stressed that these conditions necessitate decisive policy action to manage inflation. The central bank previously hiked interest rates in May by 25 basis points to 7%, its first increase in three years.