Country’s economic recovery on track: Reserve Bank Governor

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Reserve Bank Governor, Lesetja Kganyago, says the country economic recovery is on track despite the many challenges.

Speaking during a virtual address of the bank’s centenary celebration on Wednesday, Kganyago said he believed the central bank has done a lot to curb further erosion of the economy as a result of COVID-19.

He says they had cut the Repo rate by 275 points between March and July 2020 to ease pressure off consumers and businesses.

“There is no question that our recovery will progress and our sound policy frameworks will continue to allow flexible approaches while building confidence. The SARB is a solid institution that all South African’s can be proud of for there are good men and women who staff these institutions raising to challenges they are faced with,” Kganyago says.

Kganyago says South Africa has adequate measures in place to reduce the impact of COVID-19 on the economy.

He says while these measures minimised the impact on human lives and financial markets, they came at a great cost to the economy.

“In anticipation of the economic shock which ensued the SARB responded quickly and aggressively with a broad array to limit the economic damage. In addition participation in global forums the SARB contributed to the strengthening of the global financial safety net. South Africa entered the COVID-19 crisis with stable and low inflation rates and moderate inflation expectations giving the SARB significant policy space to provide support to households and firms.”

Celebrating 100 years of SARB:

History of SARB

The South African Reserve Bank was established in 1921 as part of the recommendations of the October 1919 Gold Conference and remains Africa’s oldest central bank.

The SARB first opened its doors for business on 30 June 1921 and issued its first banknotes to the public on 19 April 1922.

It has had 10 governors so far. The governor also acts as the Chairperson of the Monetary Policy Committee, Financial Stability Committee, Prudential Committee and Governors’ Executive Committee. All Deputy Governors also sit on these committees.