South Africa’s 10-year bond yield rose to around 8.33%, after touching an over one-month low of 8.19% on April 17, as fresh hostilities in Middle East pushed oil prices sharply higher, amplifying inflation concerns. Iran reimposed the closure of the Strait of Hormuz following the escalation in tensions over the weekend, with US forces later hitting an Iranian cargo ship that tried to run its blockade. Meanwhile, South African Reserve Bank (SARB) governor Lesetja Kganyago told Reuters that volatility stemming from the ongoing conflict and its impact on inflation has complicated the outlook for near-term rate cuts. With inflation near the lower end of the SARB’s target range, policymakers are assessing whether recent price stability will persist or be reversed by external shocks in the months ahead. Economists broadly expect rates to remain on hold through 2026, with no cuts anticipated, though the possibility of rate hikes remains open.
