The South African Reserve Bank's Monetary Policy Committee has decided to increase interest rates by a quarter of a percent which takes the policy rate to 7-percent and the prime lending rate to 10-point-5 percent. The bank has cited upward inflation risks emanating from the ongoing war in the Middle East which has push up oil prices and resulted in significantly higher fuel prices in South Africa. Inflation rose rapidly from 3,1-percent in March to 4-percent in April. The bank expects inflation to average 4-point-4 percent this year amid rising prices.

<p>The South African Reserve Bank's Monetary Policy Committee has decided to increase interest rates by a quarter of a percent which takes the policy rate to 7-percent and the prime lending rate to 10-point-5 percent. The bank has cited upward inflation risks emanating from the ongoing war in the Middle East which has push up oil prices and resulted in significantly higher fuel prices in South Africa. Inflation rose rapidly from 3,1-percent in March to 4-percent in April. The bank expects inflation to average 4-point-4 percent this year amid rising prices.</p>

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<p>Munghana Lonene FM News and Current Affairs. Brought to you by SABC News.</p>