South Africa Holds Rates, Warns of Hike if Iran Shocks Persist

The South African Reserve Bank made a surprising decision to keep interest rates unchanged to bolster economic growth, despite ongoing conflicts in the Middle East that could potentially necessitate higher rates in the future. The bank's inflation forecasts were revised downward, but the geopolitical tension in Iran continues to pose risks. This decision underscores the bank's commitment to supporting the economy, though it leaves the door open for potential rate hikes if the situation in the Middle East doesn't stabilize. The rand currency weakened in response to these developments.