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S. Africa's Central Bank Revises 2023 Inflation Outlook Higher

SARB

SARB Governor begins his press conference by noting that the central bank has revised its inflation outlook for 2023 to +6.0% Y/Y from +5.4% prior, while flagging upside risks to that forecasts.

  • The central bank revised its 2023 food price forecast to +9.9% Y/Y from +7.3% prior. The forecast for core inflation is largely unchanged from the previous meeting.
  • Spot USD/ZAR came under pressure on the back of hawkish revision to the 2023 inflation forecast and probed the water below the ZAR18.00 figure.

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