The Reserve Bank in Pretoria. Picture: FINANCIAL MAIL
The Reserve Bank in Pretoria. Picture: FINANCIAL MAIL

In the end, the South African Reserve Bank decided to focus on the long-term risks to inflation, raising interest rates for the first time since 2016.

“The decision was arrived at after a robust debate,” deputy governor Daniel Mminele said. “The arguments for, and against, were equally strong.”

Currency markets cheered the decision, which improves the yield advantage of holding local assets versus their developed-country counterparts, pushing the rand up by as much as 1.3% in the immediate aftermath of the Bank's decision.

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