South African's cenbank ready to hike rates if necessary: deputy governor

by Reuters 1 views0

South African rand flat; decline in FX reserves has little effect

South Africa’s central bank sees itself in a gradual monetary policy tightening cycle and stands ready to raise interest rates if adverse developments on the inflation front occur, deputy Governor Francois Groepe said on Friday.

In a speech delivered at a conference and posted on the central bank’s website, Groepe said the bank’s gradual stance on hiking rates was due to sluggish economic growth and a negative output gap.