South African Reserve Bank Governor Tito Mboweni said on Thursday in his introduction to the 2007/08 annual report that the near-term expectations for domestic inflation remain somewhat discouraging and the Bank will continue to asses the level and trend of CPIX inflation in the months ahead.

"In the execution of its mandate to contain inflation, the Bank will consider the necessary steps to bring CPIX inflation to within the target range over a reasonable period. This is the main contribution that the Bank can make towards sustained economic growth in South Africa," he said.

Mboweni pointed out that the near-term expectations are discouraging as the acceleration in CPIX inflation is caused, in the main, by rising commodity and food prices, noted during the period under review to end March.

"Satisfactory growth"

However, he says the review period was again characterised by "satisfactory domestic economic growth, but the inflation pressures recognised by the Bank some two years ago continued unabated".

Today's annual report marks the first year that the Bank presents to shareholders and stakeholders one comprehensive report on its activities and on economic developments.

I-Net Bridge