Mminele said while the bank recognised the rand’s recent recovery, it was also aware that the trend could be easily reversed and lead to second round effects of food inflation and higher wage demands.
He said although headline inflation currently stands at 6.0 percent, on the upper end of the central bank’s target range of between 3 to 6 percent, the bank expected it to remain above the target until the middle of 2017.
"While the recent improvements to the inflation outlook are a positive development, the risks in the policy environment remain too numerous to be able to say definitively that the hiking cycle is over," Mminele said in a speech posted on the bank’s website.
