Reserve Bank governor Lesetja Kganyago has urged emerging markets, including SA, to consolidate their fiscal positions in coming years — a stance he says will indirectly help to reduce exchange rate pass-through pressure on inflation and its wide-ranging economic costs.

Speaking at the 103rd AGM of Bank shareholders on Friday, Kganyago — who has made eyebrow-raising comments about the state of the country’s fiscus and its impact on borrowing costs, the volatile rand and elevated inflation — said “persistent fiscal dissaving” is a constraint to growth from a macroeconomic perspective...

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