Kganyago: SA to keep targeting low inflation for lower rates.

SARB governor Lesetja Kganyago.
(File, Bloomberg)

Johannesburg - South African inflation is under control and the central bank will maintain a policy to keep it low to protect the poor and ease inequality, said Reserve Bank Governor Lesetja Kganyago.

Pursuing other priorities, such as reducing unemployment, has been shown in other countries to cause “widespread economic damage,” Kganyago said in a speech at the University of KwaZulu-Natal in the coastal city of Durban on Tuesday.

The Reserve Bank expects price growth to slow to 5.4% next year and 5.5% in 2019, he told reporters at the event.

“The best way to get permanently lower interest rates is to bring down inflation - and then keep it low and predictable,” the governor said. “Inflation is under control and if it is under control it reduces poverty and inequality.”



By Kevin Crowley.
Full story at Fin24.