The South African Reserve Bank (Sarb) is set to announce its decision on the repo rate on Thursday afternoon with expectations that it will remain unchanged.
Figures released by Statistics South Africa show inflation increased to 4.5% year-on-year for April from 3.8% in March.
There are concerns that this increase, together with fuel prices set to rise next month, could see inflation rise even further.
Petrol and diesel prices are set to rise by an expected 78 cents and 84 cents a litre next month.
Traders have noted that the latest figure of 4.5% for April is comfortably inside the target range of 3% to 6%.
Lumkile Mondi, from the Wits School of Economics and Business Science, says that he expects rates to remain unchanged.
He also says the bank will be cautious, adding there has been positive news.
“Post the Ramaphosa election we’ve seen some positive news where employment has improved.”
He says the global economy is recovering, but a number of factors, including the weaker rand, will have a direct bearing on Sarb’s decision.