Economist warns another rate hike would hurt South Africa
Shannon Bold, an economist at the Bureau for Economic Research, says rising oil prices weigh on the economy and that November carries a risk of another repo rate hike. She said the longer the war on Iran lasts, the more pressure oil prices face.
Bold is a senior economist at the Bureau for Economic Research. She spoke in an interview with CapeTalk presenter John Maytham. She said refinery supply around the globe is wearing thin and that earlier buffers from the start of the war are gone.
She said the Reserve Bank was right to raise the repo rate in September. On the risk of another increase, she said: "It would be a double whammy if another hike were to come through."
Treasury said it can afford only R10 billion in fuel support for November and December. It said the money is a fiscally neutral transfer between the Central Energy Fund and the National Revenue Fund. Bold said Treasury will always offer support if it is fiscally neutral, and she cited talks on the sidelines of the Medium Term Budget Policy Statement.
Bold said the oil price may keep hovering between $110 and $120.
Key facts
- Who
- Shannon Bold (senior economist at the Macroeconomic Modelling and Forecasting Unit of the…); John Maytham (CapeTalk presenter who interviewed Bold); Treasury (government department that said it can only afford R10 billion in fuel support…)
- What
- In an interview with CapeTalk's John Maytham, Bureau for Economic Research economist Shannon Bold discussed the impact of rising oil prices on South Africa, including Treasury fuel support for November and December and the risk of another repo rate hike.
- When
- 27 October 2026
- Where
- South Africa, Iran
- Status
- Reported