The South African Reserve Bank (SARB) is maintaining its commitment to a 3% inflation target, emphasising that this will support price stability and long-term economic growth.

Governor Lesetja Kganyago highlighted the challenges facing the economy, noting that uncertainty from trade disputes, geopolitical tensions, and global debt concerns continues to weigh on emerging markets.

“We are in an uncertain environment, and this uncertainty is likely to persist for some time. Trade disputes and geopolitical tensions are in the spotlight. Only in April, as we were heading to the International Monetary Fund and World Bank spring meetings, announcements about tariffs added to this uncertainty,” Kganyago said.

The national treasury is expected to provide further guidance on the inflation target next month during the Medium-Term Budget Policy Statement.

–ChannelAfrica–