PRETORIA, Sept 21 (Reuters) - Below are comments from South African Reserve Bank Governor Lesetja Kganyago on Thursday as he announced the central bank’s latest decision on its benchmark repo rate.
“Growth prospects ... remain subdued as domestic fixed investment contracted further amid low business confidence.” “Lower inflation, lower interest rates and higher real income growth are expected to provide some support for consumption.”
“The inflation forecast has increased marginally since the previous meeting of the MPC, with increased uncertainty regarding a number of drivers.”
“The main drivers of these changes (in inflation forecast) are a lower repurchase rate, a less appreciated exchange rate assumption, a slightly narrower output gap and a marginal adjustment to the food price inflation forecast.”
“The rand remains sensitive to political developments, weak economic growth prospects and the risk of further sovereign ratings downgrades.”
Reporting by Mfuneko Toyana, TJ Strydom and Tanisha Heiberg; Editing by Tiisetso Motsoeneng