Data released this week showing a further decline in inflation expectations in South Africa provide further ammunition for those arguing that the time is right for the SARB’s inflation target to be lowered, a move that would probably bring even deeper interest rate cuts onto the table. The Treasury seems to be cautious about such a move; one area where it has moved quickly, however, is the rejection of suggestions that the Reserve Bank should be nationalised. Elsewhere, the sharp drop in Ghana’s headline inflation rate in June, helped by a world-beating rally in the cedi, will pave the way for the central bank to resume its easing cycle this month
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