Sarb deputy wary of weaker currency with inflation rising
Daniel Mminele says exchange rate depreciation would impact inflation outlook
Exchange rate developments pose the "single biggest risk to South Africa's inflation outlook", the central bank's deputy governor Daniel Mminele warned today (June 12).
Addressing the annual conference of the Bureau for Economic Research in Johannesburg, Mminele warned "any significant weakening of the exchange rate in reaction to US monetary policy tightening could cause inflation to diverge even further from target".
This could then lead to "second-round inflationary pressures", he added, at a
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