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Lower SARB Inflation Target Looks Increasingly Likely

SOUTH AFRICA
  • Speaking later yesterday, SARB Governor Kganyago stated that the bank’s immediate priority is to return inflation to the middle of its target range of 3 – 6%. Additionally, the longer-term target for SARB is to reduce the inflation target itself and allow for lower interest rates.
  • The comments follow the bank’s policy review earlier in the year, at which the bank were assessing proposals to drop the inflation target to 3%, and these comments make such a policy switch more likely.
  • Today, Ramaphosa addresses lawmakers on the government’s progress on the energy crisis as well as state corruption. He is likely to announce a restructuring of the Eskom board of directors but is likely to stop short of removing CEO de Ruyter, pending a thorough review of the utility’s operations.
  • In parliamentary proceedings yesterday, the ANC defeated an opposition motion for a fully fledged inquiry into the Phala Phala farm scandal, with the ANC garnering backing from some smaller parties. The move allows the President to continue to avoid answering opposition questions on the matter.
  • PPI data crosses later Thursday, and is expected to slow to 0.4% on the month, 17.5% on the year.
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  • Speaking later yesterday, SARB Governor Kganyago stated that the bank’s immediate priority is to return inflation to the middle of its target range of 3 – 6%. Additionally, the longer-term target for SARB is to reduce the inflation target itself and allow for lower interest rates.
  • The comments follow the bank’s policy review earlier in the year, at which the bank were assessing proposals to drop the inflation target to 3%, and these comments make such a policy switch more likely.
  • Today, Ramaphosa addresses lawmakers on the government’s progress on the energy crisis as well as state corruption. He is likely to announce a restructuring of the Eskom board of directors but is likely to stop short of removing CEO de Ruyter, pending a thorough review of the utility’s operations.
  • In parliamentary proceedings yesterday, the ANC defeated an opposition motion for a fully fledged inquiry into the Phala Phala farm scandal, with the ANC garnering backing from some smaller parties. The move allows the President to continue to avoid answering opposition questions on the matter.
  • PPI data crosses later Thursday, and is expected to slow to 0.4% on the month, 17.5% on the year.