Under the leadership of the newly enthroned South African Reserve Bank (SARB) Governor, Lesetja Kganyago, confirmed yesterday what most analyst were thinking: the interest rates in South Africa will remain on the same level as below as fears of inflation are subdued.
The target corridor for the inflation rate of between 3% and 6% seems not to be in danger of being vacated soon. A weaker Euro, lower oil prices and a lack of natural catastrophes saving a lot of crops contribute not only to a low inflation, but now also for a trade surplus of almost ZAR 7bn as well as a petrol price that dropped the first time in ages below the ZAR 10 mark – at least in some coastal areas.
A good start into SARB 2015!