Middle East War Clouds South Africa Rate Cut Path
Governor Lesetja Kganyago says Middle East volatility makes near-term rate cuts unlikely. The bank uses scenario planning to manage fluctuating energy prices.
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The governor of the central bank of South Africa has indicated that the ongoing conflict in the Middle East and its resulting market volatility have clouded the prospects for easing interest rates. Lesetja Kganyago explained that the current environment makes it challenging to predict a near-term path for policy relaxation, primarily due to the upward pressure on inflation.
All that we know is that it is growth-negative and would also lead to a rise in inflation.
