Following the recent depreciation of the rand the outlook for the sector is more positive, but nevertheless fragile. The exchange rate is an important part of this story. As we have seen the rand has been on a depreciating trend over the past few months, but has also been highly volatile.
BIS central bankers’ speeches  3  The Consumer Price Index increased by 5,9 percent in March this year, the same increase as in February. The year-on-year price increases were mainly driven by the categories of housing and utilities and transport, with the higher petrol prices impacted by the weaker exchange rate, and the exchange rate remains an upside risk to the inflation outlook.