<\/p>\n
South African Reserve Bank Governor Lesetja Kganyago says policymakers can afford to respond cautiously to the after-effects of inflation shocks such as higher oil prices caused by the Iran war and a looming drought.<\/p>\n
\u201cWe are dealing with, for lack of a better word, what I would call a polyshock, and that means that the decisions that we take are, not that they were ever easy, but they have just become even more difficult,\u201d Kganyago said on News24\u2019s Bruce Whitfield\u2019s Business Week podcast on Thursday.<\/p>\n
\u201cThe manner in which we respond to the aftereffects of the shock can continue to be measured.\u201d<\/p>\n
Kganyago and his colleagues unexpectedly\u00a0kept\u00a0the benchmark policy rate at 7% at their July meeting, after raising it by 25 basis points at the previous gathering, citing risks to economic growth and lowered their inflation forecasts.<\/p>\n
Read: Borrowers get relief as MPC holds interest rates<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n
The six-member Monetary Policy Committee (MPC) will next decide on rates on 23 September as the Middle East conflict rages on, driving up energy and fertiliser prices and the El Ni\u00f1o weather pattern threatens to curb rainfall impacting food costs.<\/p>\n
Read:
Africa faces El Ni\u00f1o with less room to weather shock, IIF says
Inflation threat as diesel prices shoot up more than 11%<\/p>\n
Food accounts for almost 17% of the consumer price index.<\/p>\n
Forward rate agreements, used to speculate on borrowing costs, are pricing in a 52% chance of a 25 basis point increase at the next MPC meeting, compared with 61% on Wednesday.<\/p>\n
Kganyago also repeated his resolve to return inflation back to the central bank\u2019s 3% goal adopted last year.<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n
Price growth moderated to 4.3% in July from 5% the prior month.<\/p>\n
\u201cWhat is in no doubt is that the Reserve Bank is committed to getting inflation back on target,\u201d he said. \u201cWe will bring inflation back to target.\u201d<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Kganyago #sees #room #caution #rate #moves<\/p>\n","protected":false},"excerpt":{"rendered":"
South African Reserve Bank Governor Lesetja Kganyago says policymakers can afford to respond cautiously to…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[11007,7681,2616,126,1502,2740],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/15262"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15262"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/15262\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}