Reserve Bank expected to keep interest rates on hold amid VAT, inflation pressures

The South African Reserve Bank (Sarb) is anticipated to maintain its current interest rate at 7.5% per annum on Thursday, as it takes a measured approach to assess the potential ramifications of an impending value-added tax (VAT) increase. This decision comes amidst predictions of rising consumer inflation, which is expected to persist its upward trajectory in the forthcoming months. With economic pressures mounting, many are looking towards the Sarb's next moves as a litmus test for the ongoing cost-of-living crisis affecting households across the nation. The looming VAT hike, designed to bolster government revenue, raises questions on how it might influence day-to-day consumer spending and, ultimately, inflation rates. This comes as the annual headline consumer price inflation in South Africa showed resilience in February, remaining unchanged from January at 3.2%.…