No amount of monetary policy action can lift Mzansi’s economic and performance if structural impediments such as poor electricity supply are not dealt with, Reserve Bank governor Lesetja Kganyago says.
The Bank, which has had to fend off criticism that it could have done more to safeguard the economy since the outbreak of Covid-19, despite cutting its main interest rate to the lowest level in about half a century, can do very little about the factors that have held SA back over the past decade, Kganyago told Tim Modise on Business Day TV’s current affairs show, Political Currency.
Even as the economy made a tentative recovery after the national lockdown was eased in July, Eskom was still unable to keep the lights on, he noted. The economy was hit with power cuts, despite the lockdown ceasing activity across the board since March, with GDP contracting 51% in the second quarter on an annualised basis.
In other news – Zuma Foundation accuses Zondo of trying to humiliate Jacob
The Jacob Gedleyihlekisa Mhlanganyelwa Zuma Foundation has lashed out at the chairperson of the commission of inquiry into state capture, Deputy Chief Justice Raymond Zondo, for his media conference apparently set up to “humiliate” the former president and his attorneys. Learn more
Source: Timeslive
