The Sarb raised rates by 25 basis points in July 2014 after inflation extended, beyond the 3%-6% target, to 6.6% in May and June 2014. Despite high inflation, economic growth has remained lacklustre. Marcus added that the 'domestic economic growth outlook remains weak'.
- The bank's forecast for 2014 GDP growth was revised to 1.5% with risks on the downside.
- GDP predictions are also down for the next two years.
- Marcus said divergent growth outlooks in the developed world was likely to drive policy decisions.
- She said the rand was expected to remain sensitive to sentiment regarding US policy and geopolitical risk.
South Africa (ZAR) Mid-market rates: 2014-09-18 13:59 UTC