Africa-Press – South-Africa. The central bank, under Kganyago, has repeatedly said that clearing obstacles that would bolster job creation and economic growth fall outside the scope of monetary policy. The Reserve Bank contributes to the economy through its constitutional mandate to protect price stability in the interest of balanced and sustainable economic growth, Kganyago said.
“You cannot do that unless you take into account what is happening to economic growth, what is the potential growth of this economy, what is happening with employment creation and what is the non-accelerating inflation rate of unemployment,” he said.
The bank has addressed the worst global inflation shock in a generation by doubling the benchmark rate since November 2021 to 7%, drawing criticism from some politicians and labor unions. Though its stance meant South Africa hasn’t experienced inflation-target misses of the scale as some African and developed-market economies, and interest-rate hikes haven’t been as large as in other emerging markets.
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