PORT ELIZABETH, SOUTH AFRICA, April 8 The recent increase in the benchmark repo rate by the South African Reserve Bank (SARB) is aimed at avoiding accelerating inflation, an official of the central bank says

This was stated at a bi-annual meeting by the SARB Monetary Forum in Port Elizabeth in Eastern Cape Province Thursday by the Senior Economist at the SARB Research Department, Pamela Mjandana, who added that some gradual adjustments had to be made.

The forum is aimed at communicating and creating a better understanding of the central bank’s monetary policy stance among stakeholders, including the public.

“In terms of the policy, there has been some gradual adjustments as you know, the 25 basis points that has recently been announced, before that it was the 50 basis points, said Miandana.

“So that is obviously for avoiding acceleration in the inflation, as you see the inflation outlook has got a breach which is remaining outside for an extended period.”

The central bank raised its its key repo rate by 25 basis points to 7.0 per cent per annum on March 17 after having raised the rate by 50 basis points to 6.75 per cent in January.

SOURCE: NAM NEWS NETWORK