South African Central Bank Holds Rate at 5.50%

The South African Reserve Bank held its repo rate unchanged at 5.50% as inflation risks rose. The Bank noted "Since the previous meeting of the Monetary Policy Committee, the risks to the outlook for domestic inflation have increased on the upside, mainly as a result of cost push pressures,". South Africa saw inflation of 3.7% in February this year, while the central bank is forecasting 4.7% inflation in 2011 and 5.7% in 2012 as commodity prices remain elevated.

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