South African Reserve Bank raises interest rate to 7%, warning that oil shocks, food inflation and global instability could drive prices higher

With low inflation, the monetary policy committee said it is aiming for inflation to settle at 3% — the bottom of its target range — to spur economic growth

Economists are also watching out for whether the central bank will adjust the target for inflation, which for now remains within a 3-6% target band

The announcement comes as the bank foresees lower global interest rates and a weaker outlook for the local economy

The monetary policy committee said it remains vigilant amid risks to inflation outlook on the global and domestic front

This was despite the central bank highlighting upside risks to the inflation outlook

The governor of the central bank mulls targets as inflation drops

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

Inflation is now expected to return to the Reserve Bank’s midpoint target at the end of 2025, later than previously forecast This content is restricted to registered users and…

The president reappointed Reserve Bank governor Lesetja Kganyago, as well as deputy governors Fundi Tshazibana and Rashad Cassim

Commentators are cautiously positive about the treasury’s decision to use the Gold and Foreign Exchange Contingency Reserve Account

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 This content is restricted to…

The Reserve Bank governor confirmed the central bank is in talks with the treasury over calls to tap the Gold and Foreign Exchange Contingency Reserve Account This content is…

Despite ongoing volatility, the monetary policy committee revised its 2023 headline inflation forecast down slightly This content is restricted to registered users and…

Central banks’ contribution to climate change-related aims, and their role in the transition, depend on government policy

Data released on Wednesday showed that the annual rate accelerated to 5.4%, from a previous reading of 4.8%

As central bankers in the advanced world unite over the ‘higher for longer’ mantra, the Reserve Bank cautions against raising targets amid still-high inflation

Central bank governor Lesetja Kganyago said the job of tackling inflation was not done yet