PRETORIA, May 24 – South Africa’s central bank said on Tuesday that the inflation outlook had deteriorated markedly and it would not hesitate to act to quell price pressures, but gave no clues as to when it might start raising interest rates.
The Reserve Bank’s Monetary Policy Committee has left its repo rate unchanged at its three meetings this year after reducing it by 650 basis points to 5.5 percent between December 2008 and December 2010.
“The MPC will remain vigilant with respect to indications of second-round effects or generalised inflation and will not hesitate to take timely appropriate action, particularly if inflation is expected to move out of the target range on a sustained basis,” the bank said in its Monetary Policy Review.
Source: Reuters Africa newsletter
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