The central bank said strikes, which have hit vital gold, platinum and coal production, coupled with weaker performance in the industrial sector, would trim output.
In a report published Tuesday, the bank's regular Monetary Policy Review said that recent volatility in the mining sector and a weaker secondary sector suggest lower output growth for the economy as a whole in the third and likely fourth quarters of 2012. The comments came just weeks after the bank revised its 2012 forecast down to 2.6%.
According to Fin24, the bank noted a "strong" flow away from South Africa shares by foreign investors. "Concerns over developments in the mining sector appear to be a primary factor behind strong sales of South African equities by non-resident investors," it said, adding that generous miners' wage deals could fuel inflationary pressures. Finally, SARB warned that Africa's largest economy also faced headwinds from abroad.
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