South Africa’s Kganyago Sees High Rate-Pain Relief on Horizon
- Central bank chief sees inflation heading under 6% in June
- Cautions price pressures face sticky structural headwinds
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Pain from South Africa’s high interest rates will ease as inflation slows, said Reserve Bank Governor Lesetja Kganyago, while warning that price pressures may prove stubborn.
“This will come to an end at some point,” he said Wednesday in an interview on 702 Radio. “What will that point be? It would be the point where we see that inflation is converging towards what we consider to be a level that is consistent with price stability, which for us is 4.5%.”