The International Monetary Fund's First Deputy Managing Director Gita Gopinath praised South Africa's central bank for being proactive in raising interest rates but said energy and logistics challenges were restricting growth.
Gopinath told Reuters in an interview that the strategy followed by the South African Reserve Bank was "appropriate", pointing to the fact that inflation was now back within the target range.In July, the central bank paused its rate hiking cycle after raising the main lending rate by a cumulative 475 basis points to 8.25% since November 2021.
While Gopinath lauded the central bank, she cautioned that ongoing electricity and logistics constraints would hurt South Africa's growth outlook. Logistical challenges from the port and rail authority have also limited the ability of key export commodities reaching their final destinations.
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