JOHANNESBURG, Nov 15 – South Africa’s monetary policy will maintain its focus on hitting a 3-6 percent inflation target over the medium term but will remain sensitive to the domestic economic situation, Reserve Bank Governor, Gill Marcus, said on Tuesday. Marcus told a meeting of the Swiss Chamber of Southern Africa that the developments in the exchange rate — which has been hit by bouts of risk aversion due to uncertainty over the euro zone debt crisis — had implications for monetary policy.
The rand exchange rate was now seen imparting an upside risk to the inflation outlook, Marcus said, reiterating the bank’s view that inflation would exceed the 3-6 percent target range towards the end of this year.
Source: Reuters Africa newsletter
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