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South African Reserve Bank (SARB) Governor, Lesetja Kganyago.
South African Reserve Bank (SARB) Governor Lesetja Kganyago says the central bank has set its focus on its price stability mandate and ensuring that the new inflation target expectations are embedded.
The bank set a new target of 3% with a 1% tolerance band last year.
Kganyago believes this will help the country to navigate the global economic disruptions.
He is among the SA delegation attending the World Economic Forum (WEF) in Davos, Switzerland.
Kganyago says, while the Bank’s Monetary Policy Committee remains focused on dealing with inflation, Treasury has been dealing with fiscal consolidation and reforms that it can help the economy.
“For us, it is not just about inflation, it’s also about economic activity. And our response in South Africa is three prone. Firstly, is that the central bank must focus on its price stability mandate and importantly, that we pursue the new inflation target with a vigor and make sure that inflation expectations are embedded,” says Kganyago.
“Monetary policy remains focused on dealing with inflation. Secondly, is that these global disruptions, and the impact that they could lead to the rise in borrowing costs globally, including borrowing costs for South Africa,” he adds.
The South African Reserve Bank (SARB) Monetary Policy Committee (MPC) will meet next week for the first time in 2026 to determine the next interest rate move for the country.
— BusinessTech (@BusinessTechSA) January 20, 2026
