South Africa’s Central Bank Hikes Policy Rate by 25bps to 7.25%

The move itself was priced in, so the signal matters more than the hike. What's notable is that the central bank is still tightening while several major peers have paused or pivoted, keeping South Africa's real rate differential — and the rand's carry appeal — in focus for cross-border allocators. Whether this proves the terminal rate of the cycle, and how the currency and local asset markets absorb a still-restrictive stance, is the open question.