Morgan Stanley Sees South Africa Rate Hike in May Amid Iran War

The central business district in Johannesburg.Photographer: Leon Sadiki/Bloomberg

South Africa’s central bank is likely to go on the offensive against inflation and raise interest rates as soon as its next meeting in May, according to Morgan Stanley.

The South African Reserve Bank held rates at 6.75% on Thursday, but stressed the Iran war is clouding its inflation outlook and opening the door to hikes if the conflict drags on.