Trump 2.0 lights warning signals at Reserve Bank
Bank cuts repo rate again as inflation crimps, but governor Lesetja Kganyago sees global risks on the horizon
South African Reserve Bank governor Lesetja Kganyago has warned that the brighter outlook for inflation could be short-lived in light of global geopolitical tensions and the protectionist policies of the incoming Donald Trump administration in the US.
Kganyago, speaking on Thursday after the monetary policy committee cut its benchmark interest rate by 25 basis points to 7.75%, said central bank governors generally do not comment on leadership changes in other countries, but going by the US president-elect’s campaign promises the global market could expect a more protectionist approach from the world’s biggest economy. ..
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