Lesetja Kganyago’s comments dampen expectations for rate cut in 2019

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Lesetja Kganyago’s comments dampen expectations for rate cut in 2019
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Reserve Bank governor says Monetary Policy Committee welcomes lower inflation expectations, but wants to see more evidence of lower future prices

Reserve Bank governor Lesetja Kganyago at the central bank's offices in Pretoria. Picture: BUSINESS DAY

The committee welcomes the fact that inflation expectations have declined, but it wants to see more evidence of lower future prices, Kganyago said. The last time any panel member voted to ease borrowing costs was in March 2018, even as the economy went through a recession last year and will only reach 2% growth in two years’ time, according to central bank forecasts.

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