The Bank’s most recent forecast is for growth of 2,0 per cent in 2013, rising to 3,3 per cent next year. However, there are downside risks to this forecast, particularly given electricity supply constraints.
At the same time, driven mainly by a depreciating currency and rising wage and salary costs, the forecast inflation path has moved up, and a temporary breach of the target range is expected in the third quarter of this year, despite an absence of strong demand pressures.