South African Reserve Bank Governor Lesetja Kganyago. Picture: Thobile Mathonsi / African News Agency
“Even after we adjusted rates, inflation kept on climbing and it only peaked in July last year before it started to decline although the declines were very minuscule t first.” Asked if the Sarb was not trying to fight state failure where higher interest rates was the price of state failure on so many fronts as it fed into cost and the inflationary scenario, Kganyago was quite firm.
Asked about the influence of the exchange rate, Kganyago said it was not one of the variables the central bank controls. “We saw this week that the pound is at its weakest against the dollar since whenever. The Rand is so weak as it was in 2020. The euro is this weak against the dollar and there is a realignment of exchange rates and the Rand is no exception to that realignment.
“Their interest rates are definitely not 8.25%. And north of here, just across the Limpopo, is another country with inflation in the nineties. Their interest rates are no way close to 8.25%. The countries with low interest rates at the moment are countries with low inflation.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: mailandguardian - 🏆 2. / 92 Read more »
Source: SATodayNews - 🏆 44. / 51 Read more »
Source: KickOffMagazine - 🏆 36. / 51 Read more »
Source: KickOffMagazine - 🏆 36. / 51 Read more »
Source: KickOffMagazine - 🏆 36. / 51 Read more »