Kganyago: Employment & growth are limited by factors that's beyond reach of Sarb
There are also expectations for the bank to take more drastic measures to revive growth, including calls to lower interest rates.
But Kganyago has warned that putting pressure on the central bank to bring down unemployment could lead to policy mistakes. He believes the country's high unemployment rate, which currently sits at 33.9%, needs more credible solutions. Kganyago delivered a public lecture on monetary policy, growth and jobs at the Wits School of Governance in Parktown on Monday.
"We should be careful not to add to our policy objectives in a way that surely would push us into sharply higher inflation. The claim that more expansionary policies will solve the unemployment problem is simply an empty promise, backed up by little more than ideology and wishful thinking. Employment and growth are both limited by factors that are beyond the reach of the central bank."
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