SA monetary policy can’t fix economy alone, Kganyago says
JOHANNESBURG – South Africa’s weak economic growth is due to unsustainable policies and monetary policy alone can’t fix that, Reserve Bank Governor Lesetja Kganyago said.
D
ata released on Tuesday showed Africa’s most-industrialized economy slumped into its second recession since President Cyril Ramaphosa came to power at the start of 2018, after gross domestic product declined more than projected in the fourth quarter. That was largely blamed on power cuts that intensified in the period, knocking business confidence.
ata released on Tuesday showed Africa’s most-industrialized economy slumped into its second recession since President Cyril Ramaphosa came to power at the start of 2018, after gross domestic product declined more than projected in the fourth quarter. That was largely blamed on power cuts that intensified in the period, knocking business confidence.
“The supply-side of this economy is in deep trouble,” Kganyago said Wednesday in a public lecture in the central city of Bloemfontein. “Unfortunately, these kinds of growth constraints are beyond the reach of monetary policy.”
Source: iol.co.za
