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South African Interest Rates May Fall, And Not Due to Politics

  • Majority of economists in Bloomberg survey predict easing
  • Kganyago was reappointed for a second five-year term
South African Reserve Bank Governor Lesetja Kganyago Interview
Photographer: Waldo Swiegers/Bloomberg
Updated on

Should Lesetja Kganyago announce a cut in South African interest rates this week, as expected, it won’t be because the nation’s politicians want him to.

The biggest economic contraction in a decade has led to renewed calls from labor unions and some officials in the ruling party for an expansion of the Reserve Bank’s mandate to include economic growth and job creation, and for a cut in its key interest rate to help boost output.