# Trade union Solidarity has urged the South African Reserve Bank not to raise interest rates further when its Monetary Policy Committee meets this week. According to the union, June’s increase in inflation to five-percent was mainly caused by higher fuel prices linked to the conflict in the Middle East, rather than strong consumer demand. Solidarity’s Theuns du Buisson says another rate hike would do little to reduce inflation but could slow economic growth.
Solidarity urges the Reserve Bank not to overreact to inflation spike