The Reserve Bank has cited continued high oil prices as a key factor in its decision to increase the policy rate - formerly known as the repo rate - by 25 basis points to seven point two five percent meaning the prime lending rate will increase to 10 point seven five percent. This follows a meeting of the Bank's Monetary Policy Committee. The increasing oil prices are linked to continued hostilities in the Middle East and Russia's full scale invasion of Ukraine. The Reserve Bank says the inflation rate is expected to  increase to above five percent later this year or early next year. Ernest Timbane spoke to economist, Vince Ndove..

<p>The Reserve Bank has cited continued high oil prices as a key factor in its decision to increase the policy rate - formerly known as the repo rate - by 25 basis points to seven point two five percent meaning the prime lending rate will increase to 10 point seven five percent. This follows a meeting of the Bank's Monetary Policy Committee. The increasing oil prices are linked to continued hostilities in the Middle East and Russia's full scale invasion of Ukraine. The Reserve Bank says the inflation rate is expected to &nbsp;increase to above five percent later this year or early next year. Ernest Timbane spoke to economist, Vince Ndove..</p>

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