South Africa’s central bank will tolerate temporary breaches of its inflation target to smooth out short-term fluctuations in economic growth, but a persistent breach will require a policy response, deputy Governor Daniel Mminele said.
In a speech delivered at an investment seminar in the United States at the weekend and posted on the bank’s website, Mminele said food price pressures, which had intensified in recent months posed a significant upside risk to inflation.
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Source: CNBC Africa