Kganyago: monetary policy can't solve South Africa’s structural issues

Lesetja Kganyago
Lesetja Kganyago: “We cannot ‘buy’ higher growth and employment through high inflation”
Elske Photography

The governor of the South African Reserve Bank (Sarb) has said it cannot solve a structural growth problem with monetary policy, irrespective of its framework.

Speaking at the central bank’s annual meeting today (July 28), Lesetja Kganyago said keeping interest rates “artificially low” might have short-term benefits, but would result in higher inflation in the long run.

“We cannot ‘buy’ higher growth and employment through high inflation,” he said.

His remarks follow a dispute that saw the

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