Lesetja Kganyago on economic growth
From Kganyago leaves repo rate unchanged at 3.5% (full speech) · · CNBC Africa
“The domestic economy grew by 4.2 percent in the first quarter of this year and by 4.7 percent in the second quarter. The outcomes reflect better sectoral growth performances and robust terms of trade.”
On , Lesetja Kganyago, Governor at South African Reserve Bank, spoke about economic growth during Kganyago leaves repo rate unchanged at 3.5% (full speech) on CNBC Africa.
About Lesetja Kganyago
Lesetja Kganyago, Governor of the South African Reserve Bank (SARB), has been active in public engagements over the past two months, addressing the economic impact of the Middle East conflict that began in late February 2026. On 28 May, the Monetary Policy Committee (MPC), which he chairs, raised the repo rate by 25 basis points to 7%, effective 29 May. Kganyago stated that the committee decided to increase the policy rate due to a "painful combination of higher global uncertainty and reduced disposable income," noting that oil prices had fluctuated around $100 per barrel and that the Strait of Hormuz was still largely closed. He described the situation as "the biggest jump in fuel price inflation in the history of inflation targeting" and said the SARB's priority was to prevent the shock from becoming persistent, reiterating a commitment to bringing inflation back to the 3% target. In a public lecture at Rhodes University on 1 May, Kganyago discussed the pitfalls of "looking through" supply shocks, arguing that central banks must manage second-round effects to prevent temporary price increases from becoming entrenched. He contrasted the current shock with the 2022 inflation surge, noting that South Africa entered this crisis with inflation at the 3% target, a restrictive monetary policy stance, and improved fiscal fundamentals. At the IMF and World Bank Spring Meetings in April, he warned that higher oil prices would translate into increased fuel and food costs, and that rising fertilizer prices posed an additional risk to food inflation later in the year. Kganyago also hosted the inaugural Tito Mboweni Memorial Lecture on 4 June, where he described the late former governor as a "giant in the world of policy" and noted that Mboweni would likely have had much to say about the rise of protectionism and attacks on multilateralism.