Such developments will have an impact on South Africa and policy developments going forward, as we are part of the global economy and one of the more liquid amongst emerging market financial markets. South Africa’s growth outlook has improved, although it remains below pre-crisis levels and below that of other emerging and developing countries.
Inflation has recently trended higher, and while the Bank’s forecast shows that CPI will breach the upper end of the target range, based on current information the MPC expects that this will be a temporary breach. However, developments will be closely monitored for any second round effects which could result in broader based price pressures. Thank you. BIS central bankers’ speeches  5