South Africa's Central Bank Vows to Bring Inflation Back to 3% Despite Iran War Headwinds: SA Reserve Bank
South Africa's Central Bank Vows to Bring Inflation Back to 3% Despite Iran War Headwinds: SA Reserve Bank
The SARB adopted the 3% inflation goal last year, replacing the previous 3%–6% range, SARB Governor Lesetja Kganyago said.
The SA Reserve Bank raised borrowing costs by 25 basis points to 7% for the first time in three years as inflationary pressures intensified following the start of the Iran war, Kganyago added.
"Target reform has been one of the big wins for South Africa recently. We are not going to snatch defeat from the jaws of victory," he said.
Earlier, the South African Rand appreciated 3.7% relative to the US dollar, thereby ranking as the third-best-performing currency within the global peer group.
Inflation has drifted from the 3% target since the war began on February 28, driven by surging energy prices, and is projected to reach 4.9% as early as the third quarter.
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