ZCZC
BCN-26
S.AFRICA-BANK-INFLATION
S. Africa needs to tame inflation, cut excessive borrowing: central bank
head
JOHANNESBURG, Oct. 20, 2018 (BSS/Xinhua) – South African Reserve Bank
governor Lesetja Kganyago on Friday said the country has to tame the stubborn
inflation and cut on excessive borrowing in an endeavour to create jobs and
boost the economic growth.
The African industrialized country is in a technical recession after two
consecutive quarters of negative growth. The country’s economy was hit hard
this year by fuel price hikes and one percentage point increase of value
added tax.
South Africa Central Bank in July revised its forecast growth for 2018 to
0.7 percent from 1.2 percent, while the forecast for 2019 and 2020 is
unchanged at 1.9 percent and 2 percent respectively.
According to Kganyago, South Africa needs to keep a tight budget and rein
in excessive expenditure on state-owned enterprises.
Meanwhile, the central bank announced on its website on Friday that the
country’s economy was being negatively affected by the weakness of the local
currency and high inflation which must fall within the 3 to 6 percent target
band.
“We don’t want to unduly constrain an already weak economy, but we must
also ensure that the average of purchasing power remains intact,” said
Francois Groepe, Reserve Bank deputy governor.
BSS/XINHUA/HR/1305