South Africa must continue to fight inflation even as central banks in other emerging markets move to cut interest rates, the country’s central bank governor has said.
South African Reserve Bank chief Lesetja Kganyago told the Financial Times in an interview that “the job of taming inflation is not yet done” in Africa’s most industrial economy, despite central bank peers elsewhere signalling that they believe the worst of price rises are over.
Chile and Brazil are among the emerging-market central banks that have increased the pace of rate cuts, after generally being ahead of advanced economies in tightening monetary policy in recent years as global inflation began to surge.