After a hawkish Monetary Policy Review on Tuesday, global analysts Lehman Brothers say they continue to look for two more 50 basis point hikes in June and August, given the tone of the review.

The key issues are concern around inflation expectations and that the Monetary Policy Committee is "surprised" going forward by actual inflation. The key would be an expected revision to its forecast on the Eskom tariff decision from the regulator on 6 June.

In the MPR on Tuesday the South African Reserve Bank (SARB) expressed concern that inflation expectations now "no longer appear to be anchored within the target range over time".

The SARB recognised that the Eskom tariff hike and the prospects of a weaker rand all have worsened the CPIX outlook, and have led to "generalised (price) pressures emerging", that is second-round effects.