Kganyago: Sorting political logjam key to kick-starting economy

Reserve Bank Govenor Lesetja Kganyago said that politics remained a key theme, especially as noise intensifies in the run-up to the ANC leadership contest in December.

FILE: SA Reserve Bank Governor Lesetja Kganyago. Picture: Cindy Archillies/EWN

JOHANNESBURG - Reserve Bank Governor Lesetja Kganyago says that sorting out South Africa's political logjam will be "at the heart" of the process of kick-starting crucial structural reform and unlocking economic growth.

Speaking on the sidelines of a conference organised in London by the Bank of England, Kganyago said that politics remained a key theme, especially as noise intensifies in the run-up to the African National Congress (ANC)’s leadership contest in December.

On the outlook for interest rates after the central bank last week kept its main rate unchanged at 6.75%, Kganyago said he's concerned about how little market expectations had adapted to falling inflation.