PRETORIA (Reuters) -Below are some quotes from South African Reserve Bank Governor Lesetja Kganyago at a news conference to announce the central bank’s latest interest rate decision.
INFLATION
“Inflation was below 3% again in April.
The undershoot of the target mainly reflects falling fuel costs, but underlying inflation is also well contained.”
“We have revised down our inflation forecasts. This reflects the lower starting point, as well as a stronger exchange rate assumption and lower world oil prices.”
“These factors offset pressure on fuel costs from the higher fuel levy announced in the budget.”
“We see balanced risks to this forecast.”
ECONOMIC GROWTH
“We do not yet have the official data for growth in the first quarter.
However, the indicators for sectors like mining and manufacturing have been disappointing, and unemployment has risen.”
“We have now trimmed our GDP projections, and currently expect growth of 1.2% this year, rising to 1.8% by 2027.”
“Given the lower forecast, we assess the risks to growth as balanced.”
DECISION
“The MPC (Monetary Policy Committee) decided to reduce the policy rate by 25 basis points.”
“Five members favoured this action, while one preferred a cut of 50 basis points.”
(Compiled by Alexander Winning)
