Lower inflation prospects give Sarb latitude

Inflation expectations have decreased to an almost four-year low with a broad-based decline inked by survey respondents, giving the South African Reserve Bank more leeway to continue easing the inflation cycle.

- Ina Opperman

The results of the inflation expectations survey are one of many factors the monetary policy committee of the South African Reserve Bank (Sarb) considers when it decides on the repo rate at its meeting every second month.

Sarb commissioned the Bureau for Economic Research (BER) in 2001 to conduct a quarterly survey to measure inflation expectations and other macroeconomic variables related to inflation. The survey covers four social groups: analysts, business people, senior representatives of trade unions and households.