Davos: SARB Governor on South Africa Inflation Target, Growth Outlook, Federal Reserve

Summary

South African Reserve Bank Governor Lesetja Kganyago speaks with Bloomberg's Joumanna Bercetche in Davos about South Africa's new 3% inflation target, growth outlook, and interest-rate path. He says South Africa's macro position is sound because of monetary-policy reform, fiscal consolidation, and structural reforms, and he expects inflation to remain in a 3% handle. He also says the SARB's quarterly projection model forecasts two further rate cuts, while policy remains data-dependent, and he defends central bank independence.

• SARB Governor Kganyago discusses South Africa's macro outlook at Davos with Bloomberg's Joumanna Bercetche.
• South Africa has adopted a new 3% inflation target with a 1% tolerance band.
• Inflation is expected at 3.6% in the upcoming print but should hold a 3% handle through the year, averaging about 3.5%.
• The SARB's quarterly projection model forecasts two further interest-rate reductions, subject to data.
• Kganyago cites fiscal consolidation, peaking debt-to-GDP, and structural reforms in energy, transport/logistics, and visas as supportive.
• He says Fed policy affects small open economies, but the SARB calibrates policy to South Africa's own inflation and growth outlook.
• He defends central bank independence and notes G20 reaffirmations and his support for Fed Chair Jerome Powell.