For a number of countries – particularly commodity exporters and countries with substantial external financing needs – inflation has also been accelerating. From the vantage point of late 2016, however, it seems possible we are at a turning point. In South Africa, for instance, we see inflation returning to target in early 2017 and then staying within the target range throughout the forecast period.
With respect to bank lending rates, the short-term prime lending rate has remained at a record low level of 1.625 per cent since September 1995.