JOHANNESBURG (Reuters) – Falling oil prices and benign food prices have served to improve South Africa’s inflation outlook, but the central bank remains in a gradual policy tightening cycle, Reserve Bank Governor Lesetja Kganyago said.
In a business speech made available on Friday, Kganyago said given South Africa’s reliance on portfolio inflows to finance its current account deficit, normalisation of U.S. monetary policy would result in the re-pricing of local financial assets.