JOHANNESBURG – South Africa’s central bank sees the bar for interest rate cuts as high, deputy governor Daniel Mminele said on Tuesday, as the bank aims to contain inflation within its target range of 3-6 percent.
“There is no guarantee that the causes of the reduced risks to the inflation outlook will persist in coming quarters,” Mminele said in a speech posted on the bank’s website.
“The (Monetary Policy Committee) has been careful to convey that some of the factors which have had a favourable impact on the inflation outlook could reverse quickly, in which case the view that we are close to the end of the tightening cycle would need to be reassessed.”
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