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The SA Reserve Bank is steadfast that it wants to see inflation expectations anchored at the 4.5% midpoint of its target range, governor Lesetja Kganyago said. While the central bank unexpectedly raised its key rate to 6.75% in November, its current policy stance remains accommodative with the benchmark rate still below neutral, Kganyago said in an interview last week with Bloomberg TV in Washington. Consumer inflation was below the target midpoint for the second straight month in February (though economists have told Business Day it is expected to be closer to the midpoint for March). It will stay within the 3%-6% range until at least the end of 2021, according to central bank forecasts. The monetary policy committee (MPC) sees inflation averaging 5.3% in 2020 and 4.7% in 2021. The committee welcomes the fact that inflation expectations have declined, but it wants to see more evidence of lower future prices, Kganyago said. “For you to have lower interest rates, you have got to...

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