Comments from central bank leader Marcus:

  • No discussion of rate cut
  • Says rand and wages are the key upside risks to inflation
  • central bank doesn’t see significant sustained rand decline
  • Economic growth for 2012 estimated at 2.5%
  • Inflation to average 5.8% in 2013 vs 5.5% in prior forecast
  • Mining industry outlook is ‘bleak’

I highlighted the final comment because it extends to other mining nations, especially Australia.

USD/ZAR hit a four-year high yesterday but is relatively stable through the central bank decision. Last at 9.0460.