SARB Governor Lesetja Kganyago on 2024 reflections, 2025 outlook

South African Reserve Bank Governor, Lesetja Kganyago, recently engaged in a reflective conversation with CNBC Africa, shedding light on the economic landscape of 2024 and offering insights into what lies ahead in 2025. The discussion touched on various key themes including the challenges faced by South Africa's economy, the implications of recent GDP numbers, and the uncertainties surrounding monetary policy amidst global shifts. Kganyago highlighted the significance of high-frequency indicators in monitoring economic performance, emphasizing the need for caution and prudence in policy decision-making. The governor addressed concerns about inflation, explaining the rationale behind the bank's approach to interest rates and the balancing act between supporting economic growth and maintaining price stability. Despite calls for more aggressive rate cuts, Kganyago defended the bank's measured approach, citing the complex and unpredictable nature of the current economic environment. He stressed the importance of forward-looking policy-making, especially in light of global policy changes and their potential impact on South Africa's economy. Kganyago also provided insights into the ongoing review of inflation targeting, emphasizing the importance of aligning with international standards while considering the specific needs of the country. Additionally, he discussed the recent assessments by rating agencies like Moody's and S&P, underscoring the importance of preparing for potential challenges while striving for economic stability and resilience. As South Africa gears up to host the G20 in 2025, Kganyago's reflections offer a valuable perspective on the path forward for the country's economy.