Job Of Fighting Inflation Is Not Done, Upside Inflation Risks Are Serious Concern

Governor Lesetja Kganyago takes questions now, noting that the MPC is "definitely" satisfied with the direction of inflation but not satisfied with its pace. As a result, the Committee believes that "the job of tackling inflation is not yet done".

• Kganyago reaffirms his familiar message that the central bank stands ready to act if inflation risks materialise and calls these risks a "serious concern," without attaching any weights to specific risks. He says that South Africa is dealing with a multiplicity of supply-side shocks and the MPC must attend to all of them.
• Kganyago says that real rates have gone up since the May meeting because earlier monetary tightening is affecting the economy and inflation is declining. He says that the current monetary policy stance is restrictive - and "correctly so". However, the SARB does not expect that it will tip the economy into a recession.