Sarb’s Groepe says inflation could rise further without policy action
South African Reserve Bank plans five hikes of 25bps by 2020
The deputy governor of the South African Reserve Bank (Sarb) says inflation could rise further than predicted if the central bank tightens policy less than forecast by 2020.
Speaking on October 19, Francois Groepe said average headline inflation is expected to increase to 5.7% in 2019, up from the 4.8% predicted for the end of this year.
“The upward trajectory of inflation is driven by the pass-through from the recent exchange rate weakness, rising food and oil prices, a narrowing output gap
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