• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

South Africa’s Central Bank sticks with hawkish tone on inflation

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
46
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

South Africa’s Central Bank sticks with hawkish tone on inflation

South African Reserve Bank Governor Lesetja Kganyago acknowledged that inflation has eased, but stressed it was premature to declare victory in the battle to contain price pressures.

“We have got to be seeing that consecutively, inflation is sustainably closer to the 4.5% that we aim for,” he said Thursday during a television interview with Newzroom Afrika. “Then we would know that we have actually conquered this monster called inflation.”

The South African central bank held its benchmark interest rate unchanged at 8.25% on Sept. 21, while stressing that it remained on alert against inflation.

“It is closer to where we would like to see it,” he said on Thursday. “Inflation has declined. But the job is not yet done.”

The central bank prefers to anchor inflation expectations close to the midpoint of its target range of 3% to 6%. Annual inflation in August quickened for the first time in five months to 4.8% from 4.7% in July, signaling that price pressures are still lingering.

Data Dependent

RelatedPosts

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

“We are guided by data. We will look at the data that’s come since our previous meeting,” Kganyago said when asked if the monetary policy committee will hold rates again in November.

He noted the risks to the inflation outlook include oil and food prices, as well as the value of the rand on foreign-exchange markets, which has weakened more than 10% against the dollar so far this year as the US central bank raised rates.

“Global financial conditions remain tight and with global financial conditions being tight, capital flows to where it can get the best returns,” he said, adding that the rate differential advantage enjoyed by emerging markets has narrowed as monetary policy in advanced economies was tightened.

In forecasts updated last month, the central bank expects inflation to average 5.9% this year down from a prior estimate of 6%, slowing to an average of 5.1% in 2024. It sees the South African economy growing 0.7% this year, up from a previous forecast of 0.4%, as ongoing power cuts and logistical constraints continue to hamper activity.

“Inflation is eating the income of South Africans the central bank has to be vigilant to that,” Kganyago said. “We do not take pleasure at South Africans being in pain because interest rates are elevated.”

South Africa’s gloomy economic outlook is also being darkened by the government’s poor public finances. Finance Minister Enoch Godongwana is expected to warn of a widening budget deficit and declining revenues when he presents a review of South Africa’s fiscal position on Nov. 1.

Independence Tested

At a later event in Johannesburg, Kganyago defended the reserve bank’s independence, noting that its mandate for stable prices is enshrined in the South African constitution.

During his current tenure, which ends in November 2024, the central bank has faced calls to soften its policy stance from members of the ruling African National Congress, which opinion polls show could lose its majority during next year’s election.

The governor said his message to anyone calling for the central bank to tack a different tack was simple: “Go change the constitution.”

He was also asked if he was interested in staying in the job for a third term. His answer left everything on the table.

“I am a servant of my people,” he said, adding he would “consider it if it is raised with me.”

Source: bloomberg
Via: norvanreports
Tags: inflationSouth Africa’s Central BankSouth Africa’s Central Bank sticks with hawkish tone on inflation
No Result
View All Result

Highlights

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

GFA Set To Release 2025/26 Premier League Fixtures On Monday August 4

Leclerc Claims Stunning Pole Position as McLaren Struggles in Changing Winds

Nigeria Losing Battle Against Hunger as Food Inflation Persists

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

Trending

Business

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here's Why American companies have cut investments in...

AI. Circuit board. Technology background, Central Computer Processors CPU concept..

How AI is Rewriting and Enhancing Water Risk Management

August 3, 2025

SheFarms Broiler Edition Kicks Off in Greater Accra

August 3, 2025

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

August 3, 2025

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.