This, Dr Matlanyane said during the 78th Monetary Policy Committee (MPC) meeting that was held at the CBL on Tuesday. As part of the agenda, the committee considered international, regional and domestic economic developments and financial markets’ conditions, to determine mandate of maintaining price stability. In her key note address, Dr Matlanyane said as of the first quarter, output growth in the advanced economies remained relatively strong, mainly driven by robust economic activity in the United States. “While in the second quarter of 2019, the unemployment rate declined moderately in all the advanced economies,” she said.
In emerging market economies, she said economic growth rates declined in India and South Africa, and remained unchanged in China in the first quarter of 2019. “In South Africa, economic growth is expected to rebound in the second quarter of 2019, boosted by the mining and manufacturing sectors. Low business confidence undermines growth prospects in the medium term while risks to long-term growth originate from structural challenges.
“The annual rate headline inflation, measured by changes in the consumer price index (CPI) for all urban areas was recorded at 4.5% in May 2019,” she said.