South Africa's economy at risk from possible US rate hike

Johannesburg

SOUTH Africa's economy remains at risk from an interest rate increase in the United States due to its still rising levels of external debt, the central bank said on Wednesday, hours ahead of a policy decision by the Federal Reserve.

"South Africa's high external financing requirements make the country vulnerable to the possibility of market volatility, which is associated with increases in US policy rates," the Reserve Bank said in its September financial stability review.