The primary story for wealth managers and lenders right now is the sudden shift in interest
rate expectations.• The Story: After a series of cuts in 2025, the South African Reserve Bank (SARB)
kept the repo rate at 6.75% in its recent meeting. However, markets are now pricing
in a potential 25bps hike for the May 28th decision.
• The Driver: Brent Crude has surged to over $100/barrel due to the ongoing conflict
in the Middle East and the closure of the Strait of Hormuz.
• The Impact: This has pushed local fuel prices up significantly (Petrol up by R3.27/l
and Diesel by R6.19/l in May), threatening to push CPI above the 4% mark and away
from the new 3% target anchor