Inflation: Kganyago not declaring victory yet

Sep 26, 2024

The Reserve Bank seems likely to keep cutting in 25bp increments until the repo rate falls to 7.25% in March, but risks remain — most notably Eskom

​The Reserve Bank seems likely to keep cutting in 25bp increments until the repo rate falls to 7.25% in March, but risks remain — most notably Eskom   

Reserve Bank governor Lesetja Kganyago was in a confident mood after last week’s monetary policy committee (MPC) meeting, declaring that the Bank’s policy stance had been vindicated and that, after the worst inflation surge in a generation, a soft landing was looking more likely.

The improvement in domestic inflation, from an annual high of 6.9% in 2022 to a three-year low of 4.4% in August, has not, however, been painless. Interest rates were raised to 15-year highs, many consumers were pushed into debt distress and the economy came within a whisker of a recession in the first half of the year…

 BusinessLIVE > economy