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Monetary Policy Committee lifts repo rate, warns of riskier inflation outlook
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Fitch warns SAâs slow rate of vaccine roll-out poses risk to economy
By Siphelele Dludla
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JOHANNESBURG - FITCH Ratings Agency on Friday warned that the Covid-19 pandemic would continue to pose risks for South Africaâs economy well into 2022 as vaccine roll-out was proceeding slowly.
Fitch said South Africaâs medium-term growth would remain low at less than 2 percent, a key rating constraint, complicating fiscal consolidation as reforms remained limited in scale and slow in implementation.
It said this will also limit the government s ability to contain the debt-to-GDP ratio.
âThe government has secured enough doses to inoculate the adult population, but most will arrive only in the second half of 2021,â Fitch said.