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South Africa central bank warns of rising second-round inflation risks

Original: South Africa central bank says second-round inflation risks rise

The South African Reserve Bank says the risk of second-round inflation effects is rising, according to a Reuters report. Second-round risks refer to price pressures spreading from initial shocks into wages and broader price-setting, a development that could complicate the bank's interest rate decisions. The warning suggests policymakers remain cautious despite signs of easing headline inflation.

Why now: Markets are watching central bank messaging closely for clues on the future path of interest rates.

South African Reserve BankSouth Africa

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