Our focus is attaining price stability: Kganyago

South African Reserve Bank (Sarb) Governor Lesetja Kganyago again defended the central bank’s decision to keep borrowing costs high as it continues to try and push inflation down.

This comes after Sarb kept the repo rate unchanged at 8.25% for a second consecutive time.

During Thursday’s announcement, Kganyago warned that persistent inflationary pressures could lead to another hike in the repo rate.

While he admitted another hiking cycle would not be a popular move among consumers with debt, Kganyago said there were other factors to take into account.

“You asked, ‘have the rates peaked and when can borrowers expect relief?’, [but] the problem with your question is that it suggests that only borrowers in this economy matter.

—EWN