WATCH: Reserve Bank Governor Kganyago sees limit to central banks’ virus role
JOHANNESBURG – South African Reserve Bank Governor Lesetja Kganyago warned against unrealistic expectations about what central banks can do to soften the coronavirus’s impact and said they should remain focused on maintaining price and financial stability.
Kganyago’s comments, made in an interview with Bloomberg TV on Monday, came in the wake of calls by senior politicians for the Reserve Bank to play an enhanced role in bolstering South Africa’s economy.
Enoch Godongwana, the ruling party’s head of economic transformation, suggested that the central bank help finance development and infrastructure through the creation of a 500 billion-rand ($29 billion) fund, while Deputy Finance Minister David Masondo has said he would support direct central bank purchases of government debt.
Source: iol.co.za