South African central bank Governor Lesetja Kganyago promised that officials will lower the inflation rate back to its 3% target despite headwinds from the Iran war.
“Let there be no doubt, the South African Reserve Bank will be getting inflation back down to 3%,” he said in remarks prepared for delivery to a conference hosted by the Bureau for Economic Research on Tuesday in Johannesburg.
“I hope our history of delivering on our targets makes that promise convincing.”
Kganyago and his colleagues last week raised borrowing costs by 25 basis points to 7%, delivering the first rate increase in three years as inflationary pressures intensified after the start of Iran war.
They also signaled that further tightening may be warranted if the conflict drags on.
“By raising rates, we hope to send a clear and credible signal that we will keep inflation under control,” he said.
“I cannot tell you
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