Goldman Says Iran War Risks Weighing on Rand, Rate Outlook

Prolonged higher oil prices could force the South African central bank to consider raising interest rates as a weaker rand pushes inflation higher than it’s prepared to tolerate.

That’s according to Goldman Sachs Group Inc. economist Andrew Matheny, who cautioned the rand may face sustained pressure if the US-Israel war on Iran pushes oil prices toward $130 per barrel, and its assumption that the disruption to crude flows won’t last long is proved wrong.