Lesetja Kganyago: Overview of the South African economy
Address by Lesetja Kganyago, Governor of the South African Reserve Bank, at the 106th Ordinary Annual General Meeting, South African Reserve Bank, Pretoria, 31 July 2026.
Lesetja Kganyago, Governor of the South African Reserve Bank, addressed the 106th Ordinary Annual General Meeting on 31st July 2026. The SARB, the oldest central bank in Africa, celebrated a milestone birthday. The bank had completed a year in the office after the stay-at-home phase in 2025. The Governor hosted President Cyril Ramaphosa in June to launch the SARB museum, which he praised for its architectural beauty.
The SARB's constitutional mandate is to protect the value of the currency for balanced and sustainable economic growth. The inflation target was reformed after 25 years, with a new target of 3% plus or minus one percentage point, adopted in 2025. South Africa's inflation rate was hit by a big oil shock in May and June 2026, pushing headline inflation to 4.5% and 5% respectively.
The Governor stated that the bank's job is to ensure inflation reverts to target, despite unexpected shocks. The bank raised rates to 7% in May to ensure inflation reverts to the new target. Financial markets have priced in the principle that lower inflation produces lower rates. The SARB continues to work on communicating and implementing policies to drive inflation down.
The Governor also mentioned challenges such as the global central banking community's interest in technological changes like AI and fintech products, and the need to balance risks with innovation.
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