South Africa's Reserve Bank, the country's central bank, has been warning about the dangers of inflation. The bank's governor was quoted in a November 30, 2005 story in Business Day (Johannesburg) to the effect that a rate hike might be on the way.
The newspaper said that the warning from the governor likely affected the noticeable reduction in consumer spending and the slide in consumer credit demand.
Because of the rapidly approaching holiday season in South Africa when shopping typically increases significantly, the warning about a rate hike was actually good news. Business Day said that since the bank was still talking and not acting this indicated that a rate hike when it comes will come after the country's main shopping season.
The central bank issued a key...