Reserve Bank interest rate hike on the cards

• The South African Reserve Bank is expected to raise interest rates by 25 basis points to 7.25%.
• The Reserve Bank targets 3% inflation with a 1-percentage-point tolerance band on either side, and has repeatedly stressed its commitment to guiding price pressures back toward that goal.
• A significant widening in interest-rate differentials between South Africa and the currencies of the US, eurozone and other trading partners could hurt the unit and make imports more expensive.