Some points they focussed on, included risks that are still in place, even though the debt crisis in Europe started looking better, as well as the Bank's inflation trajectory, expecting to be 4.5% for Q3.
The Bank also gave their view on the level and volatility of the rand exchange rate, devoting themselves to limiting the rand volatility, but not setting any goals.
Economic growth of 2.9% is expected for 2010, which is low, considering the market concensus of 3.3%, owing to the downside risks faced by the manufacturing sector. The Bank also highlighted the weakness in business confidence and the construction sector.
Finally, the Bank said that the strong household spending trend in Q1 is expected for Q2 as well, but the outlook is not that clear due to conflicting signals.
well i think the govt is too scared to let South Africans spend their money and stomulate the economy. Instead they keep their moeny in the coffers to cover the huge salary increases and spend like those tickets they gave their mates and family
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