The violence of the past week is deplorable, not only in terms of the tragic loss of life, property and vital infrastructure but also because the longer-term economic impact of this destruction will hurt the poor most.
, nor to be panicked into making rash decisions that could damage our democracy and collective futures. In fact, now is the time to maintain an even keel as we remain focused on our longer-term goals as a society, a young democracy and a growing economy. While supply side interruptions may drive inflation in some sectors over the short term, we do not expect this to impact longer-term inflation trajectories. So, while our current 4% CPI average inflation forecast might have to be revised a touch upwards, we will not make any rash decisions. Instead, we will wait and reassess once the situation calms down.
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