SARB Governor is working on lowering the country’s 3-6% inflation target range
South African policymakers are considering lowering the central bank’s inflation target, according to the governor, Lesetja Kganyago.Â
South African policymakers are considering lowering the central bank’s inflation target, according to the governor, Lesetja Kganyago.Â
In a bid to salvage its financial reputation, South Africa aims to exit the global watchdog’s grey list, promising stringent reforms.
Simon Maritz, points out that South Africa’s manufacturing sector appears resilient and has found ingenious ways to mitigate loadshedding.
BizNews interviews SARB governor, Lesetja Kganyago, in Davos on the state of the “resilient” South African economy.
The South African Reserve Bank last adjusted interest rates on 22 September 2022, when they increased the Repo rate by 75bps.
Once seen as the world’s go-to Âeconomic crisis fighters, central bankers are now desperately trying to contain a problem they allowed to happen: inflation.
An increase of 75 basis points would take the benchmark rate to 7% – a level last seen more than five years ago.
The central bank’s critics say its focus on inflation, which has meant higher interest rates over the past year, increases poverty and only hurts consumers.
It should cause South Africans concern that the government is receiving loans from the World Bank to support its economic recovery plan.
The South African rand has clearly not had its value protected. The question then becomes: Are SARB and the Treasury above the Constitution?