SA concern over oil prices

LONDON – High oil prices are starting to be a “cause of concern” given their possible impact on South Africa’s inflation rate, central bank governor Tito Mboweni said yesterday.

But Mboweni told reporters in London that domestic markets should not expect a knee-jerk hike in interest rates. “We don’t react in the first instance, we only react if we pick up on second round effects down the road… we don’t increase interest rates because the oil price hits US$41,” he said in reply to a question.- Nampa-Reuters”We don’t react in the first instance, we only react if we pick up on second round effects down the road… we don’t increase interest rates because the oil price hits US$41,” he said in reply to a question.- Nampa-Reuters