Not the right time for quantitative easing, says Lesetja Kganyago

Quantitative easing (QE), which has been stepped up by central banks worldwide to support economies during the Covid-19 pandemic, is not an appropriate tool for SA at this stage, Reserve Bank governor Lesetja Kganyago said on Friday.

The Bank, which has cut interest rates to record lows in response to the economic shock caused by the pandemic and the ensuing lockdown, still has space to deploy its existing monetary policy tools, which have not reached the point where they have “ceased to be effective”, he said.