Market Indicators
- JSE All Share (ALSI) 101,835.59
- Rand/Euro R 20.61
- Rand/Pound R 23.83
- Rand/US Dollar R 17.64
- Rand/Aus Dollar R 11.53
What a 3% Inflation Target Could Mean for Investors
The South African Reserve Bank’s Monetary Policy Committee (MPC) recently lowered interest rates in line with expectations but commented that they were now aiming for the lower end of the 3-6% target range for CPI, rather than the midpoint of 4.5%, as previously communicated.
The finance minister cautioned against interpreting this as official policy, indicating that a formal agreement between the SARB and Treasury was still needed. Interest rate markets responded well to the news; however, corporate South Africa expressed concern that the apparent misalignment on policy was not ideal for investor confidence.
