The SA Reserve Bank says that while it has been surprised by the robustness of the economic recovery from the Covid-19 recession, it is concerned it could turn out to be K-shaped, a term used to describe an uneven rebound from a recession in which some sectors grow rapidly while others continue to struggle.

That warning was contained in the Bank’s April 2021 Monetary Policy Review, a six-monthly report designed to broaden the public’s understanding of how it sets interest rates. In the report, which was published on Wednesday, the Bank cautioned that the risks to its current economic forecasts are greater than normal because of the high degree of uncertainty it had to contend with when making estimates for variables such as economic growth and inflation in the midst of the pandemic...

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