The former finance minister says South Africa’s challenge is not a shortage of regulation, but ensuring institutions have the people, skills, and capacity to implement it effectively.
The proposed framework would require future administrations to set out fiscal plans consistent with sustainable public finances and a declining debt burden.
The SARB’s governor argues the country knows how to revive the economy; the real test is whether it has the resolve to implement the necessary reforms.
A tighter, more disciplined Budget channels spending into social support and infrastructure while cutting waste to avoid tax hikes.
The MPC’s first rate cut in months underscores the SARB’s view that a lower target can support a gradual easing cycle.
Reserve Bank Governor Lesetja Kganyago says permanently lower inflation, fiscal consolidation, and reduced country risk could cut interest rates and create space for sustainable growth.
The Reserve Bank’s repo rate cut by 25bps to 7% signals the start of a more accommodative cycle as inflation remains firmly under control.
Having reached the target of 4.5% with ‘little or no cost’, Lesetja Kganyago argues that South Africa can achieve permanently lower inflation and interest rates.
