Economics
South Africa’s Central Bank Rules Out Financing Government
- Government bond purchases aimed at reducing dysfunctionality
- Providing direct funding to government could fuel inflation
The South African Reserve Bank stands on the skyline in Pretoria.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
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South Africa’s central bank ruled out helping the government fund its runaway budget deficit by paying for its spending through loans, as the ruling party debates using the institution to fund infrastructure and development.