The outlook for inflation continues to be generally favourable, with CPIX inflation expected to remain inside the target range until the end of the forecast period in 2008, South African Reserve Bank (SARB) governor Tito Mboweni said on Thursday.
Speaking at a function in George on the southern Cape coast, he cautioned however that risks and challenges remained and that vigilance as always was required.
Nevertheless, he said that continued sound fiscal and monetary policies had resulted in good budgetary and inflation outcomes and CPIX inflation had been within the target range of between 3% and 6% for 31 months.
“Against the background of a growing global economy, the South African economy has continued to grow at a healthy pace since 2004, with the GDP growth rate of 4,9% in 2005 exceeding the 4,5% registered the year before,” Mboweni added. – I-Net Bridge