Reserve Bank Governor warns of global growth slump, inflation targeting risks

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Reserve bank Governor Lesetja Kganyago says global growth remains lower than longstanding averages, while inflation targeting faces several risks for many central banks globally.

He was delivering the opening address at the Bank’s 2023 Biennial Conference  under way in Cape Town.

The conference has brought together international monetary policy leaders to share lessons and ideas on maintaining price stability and reducing inflation.

Kganyago emphasises that high debt levels also pose a risk to macroeconomic stability in many economies.

“The aftermath of the COVID-19 shock continues to affect the global economy presenting old and new risks that continually test global policy certainty. We have now entered a challenging phase of the global recovery. Following a post pandemic economic boom, global growth has once again slipped below.  Disinflation is under way, yet targeted inflation remains uncomfortably high, and underlying inflation is starting to look sticky above many central bank targets.”

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