South Africa defying the odds

• South Africa's business confidence improved slightly in July, driven by new-vehicle sales and export volumes.
• The economy continues to be affected by inflationary pressures stemming from the war in Iran, which has triggered a surge in oil prices and prompted the central bank to raise interest rates.
• The Reserve Bank is expected to keep a close eye on price pressures, with forward rate agreements pricing in a 72% chance of a 50 basis point rate hike by the end of the year.