The SA Reserve Bank kept interest rates unchanged on Thursday, but warned of possible future hikes in the face of rising inflation.

"The deterioration in the inflation outlook cannot be ignored," the central bank's Monetary Policy Committee said in a statement.

"The increased risk of possible pass-through leading to pronounced second-round effects on CPIX inflation must inform policy going forward.

"Although there is no conclusive evidence of pass-through at present, and the Monetary Policy Committee has not judged it necessary to change the monetary policy stance at this meeting, these developments will be closely monitored."

The committee would take appropriate action to ensure that CPIX (consumer inflation minus mortgage costs) remained in the target range of between three and six percent, the statement said.

Sapa

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