South African Reserve Bank governor Tito Mboweni said on Tuesday that despite the recent turbulence in international markets, the central bank was of the view that growth prospects remain sound both in South Africa and in the rest of the world.
Addressing the London Capital Club, he said the inflation threats were likely to subside given the resolute determination of central banks around the world to tighten policy.
Although the global interest-rate environment might need further tightening and the results of which might be a moderation in global growth, it is unlikely to lead to a significant downturn in global growth, he added.
“Combined with continued strong growth in China and other Asian countries, this should underpin commodity prices. Nevertheless, serious risks remain, particularly those posed by geopolitical events, which could have an impact on international oil prices.
“Domestically, the bank will continue to play its part by contributing to the favourable growth environment. This we do through ensuring that inflation remains within the target band of 3% to 6%.” — I-Net Bridge