JOHANNESBURG - The risks to South Africa's moderate inflation outlook are external and further interest rate easing will not be automatic, Reserve Bank Governor Gill Marcus said on Friday.

“Given the subdued domestic economy, the risks to the inflation outlook are mainly of a cost-push nature,” Marcus told reporters.

The bank surprisingly cut interest rates to 5 percent last week, citing concern about the effect of the global economic downturn on Africa's largest economy.

“There has been much speculation as to whether this was a beginning of a renewed interest rate easing cycle. Further monetary easing is not automatic and will be highly dependent on global and domestic developments,” Marcus said. - Reuters