Structural reforms needed to lift growth, says Lesetja Kganyago
The Reserve Bank, which has steadfastly reiterated that monetary policy alone cannot stimulate growth, faced questions after it held interest rates steady last week
No amount of monetary policy action can lift SA’s economic performance if structural impediments, such as poor electricity supply, are not dealt with, Reserve Bank governor Lesetja Kganyago says.
The Bank, which has had to fend off criticism that it could have done more to safeguard the economy since the outbreak of Covid-19, despite cutting its main interest rate to the lowest level in about half a century, can do very little about the factors that have held SA back over the past decade, Kganyago told Tim Modise on Business Day TV’s current affairs show, Political Currency. ..