Electricity shortages and the country’s precarious fiscal position are likely to be the biggest obstacles to SA’s recovery from the Covid-19 crisis, the SA Reserve Bank said on Tuesday.

Though monetary policy has provided substantial support to the economy — with the Bank cutting benchmark interest rates to a record low of 3.5% — the pace of the recovery will depend on factors outside the Bank’s control such as improved sovereign debt sustainability and structural reforms, the central bank said in its latest monetary policy review.

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