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Lesetja Kganyago on a 3% target and risks posed by rising debt in a fractured system

The Sarb governor speaks about a lower inflation target, the impact of high developed-world debt, the G20’s payments efforts and the fracturing of the multi-lateral system

Lesetja Kganyago, South African Reserve Bank
Credit: Elske Photography

Debt has grown at an alarming rate in developed as well as developing economies in recent years. What risks does this pose for the financial system and the ability for central banks to act independently and avoid fiscal dominance when it comes to monetary policy? Are you concerned about the build-up of debt in the US, China and some parts of Europe?

The issue of debt was seen in the past as an emerging market phenomenon. But it is very much now a global phenomenon. The Organisation for Economic

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