JOHANNESBURG (Reuters) – South Africa’s lending rate remains accommodative and sufficient to support an economic recovery, central bank governor Lesetja Kganyago said on Thursday, adding that the bank would keep targeting inflation to keep foreign investors happy.
“The interest rate differential that matters for capital flows isn’t the differential of the policy rate. What matters is the differential of the bond yields, and South African bond yields are still significantly higher than those is in the U.S and in real terms,” Kganyago said during a live webinar.
Reporting by Mfuneko Toyana; Editing by Gareth Jones
