At the meeting today, the Bank's Monetary Policy Committee (MPC) observed that the medium-term outlook for inflation remains positive. However, short-term price developments continue to imply that inflation will be higher than the objective range. This is due to the impact of the increase in fuel and other administered prices, revised higher forecasts for food and fuel prices and for inflation in South Africa. The latest forecast, therefore, indicates that inflation will converge to the 3 - 6 percent medium- term objective range in the second half of 2012. Accordingly, the MPC decided to maintain the Bank Rate at 9.5 percent.

• Read the MPC statement