JOHANNESBURG (Reuters) – South Africa’s central bank is wary of cutting interest rates to support economic growth until it is convinced an improved inflation outlook can be sustained, monetary policy committee member Brian Kahn said on Thursday.
“We would not want to reduce rates and then be forced into a premature reversal of policy,” Kahn said in a speech at an investor conference.
“We see price stability as the main contribution we can make to long term growth. The current stance of monetary policy is not tight and is not a constrain to growth.”
Kahn said the central bank would likely cut its economic growth forecasts in July after data showed this week that South Africa had slipped into technical recession.
(Reporting by Mfuneko Toyana; Writing by Joe Brock; Editing by TJ Strydom)