SARB, Monetary Policy Review, May 2005

The South African Reserve Bank published its Monetary Policy Review for May 2005 on 12 May. South Africa's inflation rate is expected to remain comfortably within its target range over the next two years, despite the negative impact of steep global oil prices, according to the report.

In the Monetary Policy review, the South African Reserve Bank strongly defended its decision to unexpectedly cut its key repo rate by half a percentage point to 7.0 percent in April, taking markets by surprise.

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