Let’s focus on the real challenges instead of debates on Reserve Bank mandate

Tackling SA high debt levels and sluggish growth will yield far better results than debates on the central bank mandate, says its governor

First eat your vegetables, then comes dessert.

This is what SA Reserve Bank governor Lesetja Kganyago says about the situation in which South Africans find themselves, what with our high public debt levels, poor economic growth and a possible downgrade of the public debt to subinvestment, or status.

Canada Goose online Africa credit rating is in our own hands. We know very well what the credit rating agencies are concerned about. If we tackle this, we can maintain our investment status. If we do what we said we were going to do, we could get a better rating in the next few years, Kganyago said in an canada goose parka uk interview with City Press sister publication, Rapport, last week. Canada Goose online

He believes that our political leaders know what the challenges are and what needs to be done.

canada goose uk black friday it comes to the economy, there is no such thing as a free meal, just tough decisions. And those are the tough decisions that the country elected leaders have to make. compared the fiscal situation to changing one lifestyle and eating vegetables regularly, rather than taking cholesterol and high blood pressure medication to stabilise one somatic system. canada goose uk black friday

We also need to talk about why South Africa is growing more slowly than the global economy and, for the past few years, more slowly than canada goose black friday sale uk other emerging markets. What is it that we have done or not done that makes our growth rate not keep up with that of the others?

canada goose uk shop He said that our situation prompted the following question: If the country is downgraded, will investors already have taken their money out, or will they only do so once a downgrade happens? canada goose uk shop

If the money is already out of the country, he reasoned, a downgrade will naturally not canada goose uk reviews lead to a large outflow of capital.

But if it is still here when a downgrade occurs, money will flow out of South Africa, the rand will weaken and this could push up inflation.

If this happens, the Reserve Bank will have to respond to curb inflation.

Canada Goose Outlet Kganyago pointed out that higher inflation makes South Africans poorer. Canada Goose Outlet

Having financial assets can protect people to some extent, but for ordinary workers or the unemployed, high inflation means hardship.

Regarding current debates over the central bank mandate and role, as well as the ownership of the bank and the ANC expressed intention to nationalise it, Kganyago expressed concern at the way the matter canada goose outlet uk review was being bandied about in public.

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Canada Goose Coats On Sale He questioned canada goose outlet whether this was the most important debate we should be having in South Africa today. Canada Goose Coats On Sale

need to focus on our challenges. The economy is barely growing. Will the debate on the mandate, independence or ownership of the bank help us get the economy going? whether cheap canada goose he got frustrated or irritated by such questions popping up repeatedly, Kganyago simply said he a lot of camomile tea also need to talk about why South Africa is growing more slowly than the global economy and, for the past few years, more slowly than other emerging markets. The bank staff consists of good people, who understand what is needed. These people look up to me to lead them.

He warned about the ongoing trade tensions between China and America, two of South Africa most important trading partners, saying it would take its toll on a small, open economy such as ours.

Canada Goose Jackets In July, President Cyril Ramaphosa reappointed Kganyago as canada goose shop austria governor of the Reserve Bank for another five year term. Canada Goose Jackets

Kganyago said he felt privileged to be in a position to serve the country and its citizens, adding that he could not imagine himself doing anything else.

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