According to Lesetja Kganyago, Governor of the South African Reserve Bank (SARB), inflation is currently at 4.8%, slightly down from the previous figure of 4.7%. However, sustained declines are necessary to reach the target range of 4.5% to 5%.
- Kganyago emphasized that the job on the inflation front is “not yet done.” The SARB anticipates that they will only sustainably reach their target by 2025.
- The Governor highlighted the risks posed by oil prices and the possibility of an El Niño event impacting food prices. These factors, along with tighter global financial conditions, could affect inflation in the future.
- Kganyago mentioned that the exchange rate, particularly the South African rand, remains vulnerable to fluctuations. Exchange rate movements can have implications for inflation dynamics.
- Given the current uncertainties and numerous moving parts in the global economy, the inflation outlook remains uncertain. The SARB acknowledges the complex and ever-changing nature of the economic landscape.
- The SARB stands prepared to utilize its policy tools as necessary to address inflationary pressures. They remain vigilant and ready to respond to any developments that may impact inflation.
- Since the September 21st monetary policy meeting, there have been no new readings on inflation. The most recent figure discussed was 4.8%, and the SARB continues to monitor the situation closely.