So far, most of the pressure in core inflation has been coming from imported goods, which are being repriced to reflect the weaker rand and higher global goods prices. Our forecast takes the view that core goods inflation peaked at the end of last year. A weaker rand could keep core goods inflation higher for longer.
Moreover, the policy was announced one month in advance, giving sufficient time for financial institutions to manage their liquidity. The PBC also provided timely support to those financial institutions with short-term liquidity difficulties, so as to maintain the overall stable developments of financial operation and money market interest rates.