The South African Reserve Bank (SARB) increased its policy rate by 25 basis points to 7%, its first hike in three years, aiming to bring inflation back to target.
At 1410 GMT the rand traded at 16.32 per US dollar, up 0.3% from the previous close.
Consumer inflation for April was 4% year‑on‑year, above the SARB’s 3% target.
Producer price inflation accelerated to 4.8% YoY in April from 2.3% in March.
The rate hike makes South Africa one of the few emerging markets tightening monetary policy while the Iran‑Russia war continues.
