NewsSouthern AfricaSouth Africa's monetary policy still accommodative

Sat,17Nov2018

Posted on Friday, 12 August 2016 10:36

South Africa's monetary policy still accommodative

By Olivia Kumwenda-Mtambo

Photo©Siphiwe Sibeko/ReutersSouth Africa's monetary policy stance remains accommodative and its tightening cycle would have been more aggressive had economic growth been buoyant, Deputy Central Bank Governor Francois Groepe said on Friday.

"The moderate nature of the tightening cycle is due to our concern over the growth outlook," Groepe said in a speech posted on the bank's website.

"Furthermore, real interest rates remain relatively low, implying an accommodative monetary policy stance despite the tightening."

The South African Reserve Bank has hiked the key benchmark rate - now standing at 7 percent - by a cumulative 200 basis points since January 2014 in a bid to bring inflation within its target band of between 3 and 6 percent. 



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