South African Reserve Bank Governor Lesetja Kganyago emphasized the need for caution in adjusting interest rates to avoid future regrets amid uncertainty. In a CNBC Africa interview, he stated that the recent policy adjustments were deemed appropriate, highlighting the importance of not contributing to existing data noise.
South African Reserve Bank Governor Lesetja Kganyago has indicated that interest rates will be cut cautiously in 2025, following a recent reduction of 25 basis points to 7.75%. The bank's model suggests rates may stabilize slightly above 7%, but this projection serves as a broad policy guide amid ongoing uncertainty.
South African Reserve Bank Governor Lesetja Kganyago announced that the review of the inflation target, currently set between 3% and 6%, is nearing completion. He indicated that discussions with the Treasury are rigorous, and a timeline for the new target will be provided once the process concludes.
South Africa's central bank has implemented a cautious quarter-point interest rate cut, reducing the benchmark rate to 7.75%. This marks the second consecutive meeting with a rate decrease, as policymakers indicate that further cuts may be possible, although the economic outlook remains highly uncertain. Governor Lesetja Kganyago confirmed that the decision aligns with the expectations of economists surveyed.
South African Reserve Bank Governor Lesetja Kganyago stated that the balance of inflation risks is stable following a recent interest rate cut, the first in four years. He noted that consumer price increases in South Africa have peaked at lower levels than in advanced economies, aided by positive factors like lower oil prices and improved global supply chains.
South African Reserve Bank Governor Lesetja Kganyago has called for a review of the nation's inflation target, suggesting it should be adjusted lower. He emphasized that the current target is misaligned with those of emerging market peers, indicating a need for change.