The Reserve Bank, which left interest rates unchanged on Thursday, indicated that it intends to weather temporary price shocks as it seeks to shore up an economy battered by Covid-19 and lockdowns.

Governor Lesetja Kganyago said the decision to keep the repo rate at 3.5%, the lowest official rate for about five decades, was unanimous even though the five-member monetary policy committee (MPC) turned slightly more hawkish and also upgraded its GDP forecast. On Thursday, policymakers said they judged the risks to the inflation outlook to be to the upside, compared to March, when they saw them as balanced...

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