EDITORIAL: Prices on the Bank’s radar
The monetary policy committee is on guard for changes in the longer-term inflation outlook
The committee met in November, not long after the shock electoral victory of US President Donald Trump. And its statement zeroed straight in on that, opening with, "Since the previous meeting of the MPC, the global economic and political landscape has changed significantly following the US presidential election," and going on to highlight the high degree of uncertainty about the new administration’s policies and the volatile environment this created. When the committee met this week, the first thing its statement said was: "Since the previous meeting of the MPC, the near-term inflation outlook has deteriorated, but the longer-term outlook is more or less unchanged." This time, higher international oil prices were a big issue, as was the fact that food price inflation is proving sticky despite better rains. The rand is still a wild card — it has appreciated, but as the committee sees it, the key risks could re-emerge at any stage. And the Trump risk is still high on the list. That se...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.