The central bank has maintained price stability but needs to focus on growth given the high unemployment rate.
The monetary policy committee said it remains vigilant amid risks to inflation outlook on the global and domestic front
With inflationary pressures heightened, the Reserve Bank might take a cautionary approach regarding its interest rate decision on Thursday
This was despite the central bank highlighting upside risks to the inflation outlook
A third consecutive interest rate cut will help stimulate the economy, but the central bank will also be cautious about inflation pressures
What is expected to be the second cut in an interest rate easing cycle would bring relief to consumers ahead of the festive season
This comes as inflation eased to 4.4% in August, below the midpoint of the Reserve Bank’s 3-6% target band
Governor Lesetja Kganyago said the central bank would wait for the inflation rate to fall within its 3% to 6% target before it makes a cut
Consumer inflation remains sticky above the 4.5% midpoint of the central bank’s target range
Delivering the unanimous decision, central bank governor Lesetja Kganyago cited a still uncertain global outlook
The US Federal Reserve’s ‘higher for longer’ stance and local election jitters have weighed on the rand, adding to price pressures
Inflation is now expected to return to the Reserve Bank’s midpoint target at the end of 2025, later than previously forecast
Today’s monetary policy committee meeting comes in the wake of a surprise acceleration in South Africa’s annual inflation rate
David Fowkes, who was appointed as an adviser to the governors last December, has worked for the Reserve Bank since 2013
Governor Lesetja Kganyago suggested the central bank will look for the inflation rate to fall within its target before it administers relief
Despite ongoing volatility, the monetary policy committee revised its 2023 headline inflation forecast down slightly
Central bank governor Lesetja Kganyago said the job of tackling inflation was not done yet
The inflation rate eased to 4.7%, the lowest since August 2021
Sticky inflation in major economies suggests that average interest rates will remain high and upside risks to the domestic inflation outlook remain
The slowdown will probably influence the central bank’s decision on interest rates
The Reserve Bank has already lifted rates 10 times since November 2021
A higher cost of borrowing is generally good for bank profit margins – until it isn’t
The headline rate eased to 6.3% year-on-year in May, down from 6.8%
The trend of wealth departing our shores is severely discouraging and political and economic reform is needed to stem the tide
Whatever hope was ignited among investors by the idea of a Ramaphosa presidency has mostly been snuffed out
Reserve Bank governor Lesetja Kganyago underlined the need for short-term pain in the interest of long-term gain
The rand strengthened ahead of Wednesday’s inflation data, but it still held above R19 against the dollar
The recent rand crash has led some to believe another 50 basis point rise is on the horizon, despite a view that further hiking will do little to tame inflation
The currency, which is usually a bellwether for other emerging markets, has diverged from global trends – thanks in large part to
the energy crisis
Governor Lesetja Kganyago underlined the deleterious effect of inflation, which the monetary policy committee has revised higher, on the pockets of the poor
Analysts expected inflation to continue on a downward trajectory in February after falling to 6.9% in January; instead, it reached 7%
Later this month the South African Reserve Bank will decide how big a rise the country’s flailing economy can take