Over the past two years, central banks around the globe have been hiking interest rates in a bid to tame rising inflation. SA has seen its ninth consecutive rate hike since November 2021.
That is amid muted growth, which will be further worsened by Eskom’s severe power cuts. In turn, the ailing economy will have a hard time digesting more interest-rate pain.
Reserve Bank governor Lesetja Kganyago says that it is hard to predict when repo rate increases will end but has, in the meantime, called for a lower inflation target and for deregulation in the power and transport sectors to help aid the economy.
Kganyago joined Business Day TV to discuss the issue in detail.
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