By Thebe Mabanga
The Reserve Bank’s Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.75% in a unanimous decision, opting for a wait-and-see approach amid the war in Iran and neighbouring states in the Middle East.
“Since our last meeting, the key event has been the outbreak of conflict in the Middle East,” said Governor Lesetja Kganyago when presenting the MPC statement.
“Prices for commodities like oil, gas and fertiliser have moved sharply higher. Meanwhile, there have been broad losses across equity, bond and currency markets, with only a few safe havens and energy producers showing gains,” Kganyago said, referring to the upheaval of the past three weeks.
“We are just a few weeks into this shock, and conditions remain extremely uncertain. At this stage, it is clear that global inflation will be higher in the near term, while growth will likely suffer from supply-chain disruptions and rising
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