https://www.polity.org.za
Deepening Democracy through Access to Information
Home / News / All News RSS ← Back
Africa|Business|Energy|Financial
Africa|Business|Energy|Financial
africa|business|energy|financial
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

Kganyago sees South African inflation dip creating policy space

Close

Embed Video

Kganyago sees South African inflation dip creating policy space

Reserve Bank Governor Lesetja Kganyago
Photo by Reuters
Reserve Bank Governor Lesetja Kganyago

10th October 2024

By: Bloomberg

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

South African Reserve Bank Governor Lesetja Kganyago said inflation could fall below 4% in coming months, creating more room for action after officials cut interest rates in September.

‘We expect the next two or three prints; that they could have a three handle on them and that provides policy space for us,” Kganyago told South African lawmakers in Cape Town on Thursday. “The headline disinflation is mainly supported by petering global supply shocks.”

Advertisement

The central bank’s forecasts see consumer price growth settling at 3.6% in the last quarter of this year and averaging 4% in 2025.

Official inflation data showed consumer price growth slowed to 4.4% at an annual rate in August, falling back below the midpoint of the bank’s 3% to 6% target range where it prefers to peg price expectations.

Advertisement

Cooler inflation encouraged policymakers to cut rates by 25 basis point last month to 8%.

Core inflation, which excludes food and energy costs and slowed to 4.1% in August, suggests that “the disinflation process is now firmly underway,” Kganyago said.

South Africa’s inflation outlook is benefitting from an upswing in business confidence following the formation of a broad governing coalition after elections in May that included centrist parties, boosting the rand and helping to dampen import prices.

“There is now a positive vibe about South Africa,” Kganyago said, adding that the economy probably continued its rebound in the third quarter, after expanding 0.4% the prior three months. “In spite of other emerging-market currencies, the South African rand has been strengthening, that means we have been able to flush out the bulk of the negative news that were actually embedded in South African financial asset prices,” he said.

EMAIL THIS ARTICLE      SAVE THIS ARTICLE

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options

Email Registration Success

Thank you, you have successfully subscribed to one or more of Creamer Media’s email newsletters. You should start receiving the email newsletters in due course.

Our email newsletters may land in your junk or spam folder. To prevent this, kindly add newsletters@creamermedia.co.za to your address book or safe sender list. If you experience any issues with the receipt of our email newsletters, please email subscriptions@creamermedia.co.za