Kganyago: Consumer index improving despite economic conditions

But on the other hand, Sarb Governor Lesetja Kganyago says business confidence needs to improve.

Picture: EWN

JOHANNESBURG - South African Reserve Bank (Sarb) Governor Lesetja Kganyago says that consumer confidence is improving despite difficult economic conditions.

The Monetary Policy Committee has decided to keep the repo rate unchanged at 6.75%.

Kganyago has cited a number of concerns including inflation and the volatile rand.

However, he says that households are spending more.

“The bank expects household consumption growth to be in the region of 1% for this year.”

But on the other hand, Kganyago says that business confidence needs to improve.

“Business confidence also remains at very low levels despite a slight improvement in the RMB/BER Business Confidence Index during the third quarter.”

(Edited by Zamangwane Shange)