South Africa’s central bank cautioned the ANC against overspending as a solution. The bank’s governor highlighted that fiscal degradation leads to rising interest rates, which foreign investors will account for. South Africa’s government bond yields have surged past 12%, even though the inflation rate has seen a dip. The ongoing deficit between tax revenues and expenditures has elevated yields. While the National Treasury advocates for austerity, political concerns about public reactions loom, especially with an impending challenging election for the ANC.