So far, these developments have not filtered through to broader price pressures and the appreciation bias in the rand exchange rate for most of this year, has helped to contain price pressures. That said, April inflation data does suggest that core measures may be beginning to rise. The Bank has revised higher its inflation forecasts over the past few MPC meetings.
Monetary policy will do all that is necessary to maintain price stability in the euro area over the medium term. Accordingly, the Governing Council will continue to monitor all developments over the period ahead very closely. As regards fiscal policies, we call for decisive actions by governments to achieve a lasting and credible consolidation of public finances.