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Pretoria - South African Reserve Bank deputy governor Daniel Mminele said on Friday the central bank would not hesitate to take timely action to ensure "second round" inflation did not take hold in the economy.
In a speech in Pretoria, Mminele also said the domestic inflation outlook had deterioriated in the last couple of months but said the recent decline in oil prices had alleviated the price pressure to some extent.
The Reserve Bank's Monetary Policy Committee (MPC) has left its repo rate unchanged at 5.5% at its three policy meetings this year, after slashing them by 650 basis points between December 2008 and December 2010 to help the struggling economy.
Some analysts see rates going up towards the end of the year as consumer inflation drifts towards the upper end of the bank's 3% to 6% target band.
"The MPC will not hesitate to take timeous action to make sure second-round inflation pressures do not take hold," Mmnele said in a presentation to the Association of Corporate Treasurers of Southern Africa.
South Africa's inflation picture had to date been "somewhat benign" compared to other emerging markets, and at this stage there were no discernable inflation pressures coming from the demand side of the economy, he added.
Mminele said there were tentative signs that the positive momentum in household consumption was levelling off and that high indebtedness levels were likely to constrain consumers in the future.
In a speech in Pretoria, Mminele also said the domestic inflation outlook had deterioriated in the last couple of months but said the recent decline in oil prices had alleviated the price pressure to some extent.
The Reserve Bank's Monetary Policy Committee (MPC) has left its repo rate unchanged at 5.5% at its three policy meetings this year, after slashing them by 650 basis points between December 2008 and December 2010 to help the struggling economy.
Some analysts see rates going up towards the end of the year as consumer inflation drifts towards the upper end of the bank's 3% to 6% target band.
"The MPC will not hesitate to take timeous action to make sure second-round inflation pressures do not take hold," Mmnele said in a presentation to the Association of Corporate Treasurers of Southern Africa.
South Africa's inflation picture had to date been "somewhat benign" compared to other emerging markets, and at this stage there were no discernable inflation pressures coming from the demand side of the economy, he added.
Mminele said there were tentative signs that the positive momentum in household consumption was levelling off and that high indebtedness levels were likely to constrain consumers in the future.
