(Adds further comments from QA)
PRETORIA Jan 19 (Reuters) – Below are comments from
South African Reserve Bank Governor Gill Marcus on the bank’s
decision on interest rates.
ON INFLATION
– Inflation is now expected to remain above the upper end of
the target range for a more extended period, but there is still
no evidence of significant demand pressures in the economy.
– Food prices remain the major driver of inflation,
influenced by global and local factors. A smaller than expected
maize crop contributed to the doubling of maize prices
ON DOMESTIC ECONOMY
– Since the previous meeting of the Monetary Policy
Committee, the outlook for domestic inflation and economic
growth has deteriorated, posing a serious challenge for monetary
policy going forward.
– The primary reason for the worsening domestic growth
outlook is the risk of contagion from the persistent crisis in
Europe, which shows no sign of a speedy resolution.
Continued…
