South Africa hikes key interest rate as Iran war drives inflation

South Africa’s central bank raised its benchmark interest rate by 25 basis points to 7% amid inflation driven by the Iran war, prioritizing a 3% inflation target over domestic economic recovery. The decision, supported by a 4-2 vote, contrasts with a $1 billion fuel relief package and may create tension with politicians ahead of November elections. Ghana, Kenya, and Nigeria also maintained steady lending rates despite similar economic pressures.