There are alternatives which don’t add to the financial burden of citizens and which are better for fiscal sustainability
The monetary policy committee said it remains vigilant amid risks to inflation outlook on the global and domestic front
Data from Statistics South Africa showed that the CPI annual rate braked to 2.8% – a four-year low
Consumer inflation has eased but is still not comfortably within the central bank’s target of 3% to 6%
The central bank has maintained the key repo rate at 8.25% since hiking it by 50 basis points in May 2023
The consumer price index rose 5.6% year-on-year in February and was at 1.0% month-on-month
Other factors are inflation and interest rate hikes while load-shedding has affected key sectors
Reserve Bank’s inflation forecast likely to be pushed up, with Eskom set to increase the price of electricity by 18.65% from April
Consumer inflation hit 7.6% year-on-year in October, bucking the downward trend that had been anticipated after the July ‘peak’
In a split decision, the bank’s monetary policy committee increased the repo rate, which affects the cost of borrowing, by 75 basis points
The ability of informal traders to absorb any more shocks — suchas the fuel price hike — has reached zero
High prices have been more stubborn than previously expected, forcing monetary policymakers to react
Global inflation has surprised on the upside, which may factor into whether the Reserve Bank’s monetary policy committee decides to raise the interest rate on Thursday
In South Africa, a strong trade surplus, buoyed by robust commodity prices, will cushion our economy against pressure arising from US policy
The South African Reserve Bank governor believes the state has to spur growth, restore the country’s public finances and arrest debt to escape the economic slump