Lesetja Kganyago: South Africa's adjustment path

Address by Mr Lesetja Kganyago, Governor of the South African Reserve Bank, at the South Africa Tomorrow Conference, New York City, 1 November 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
02 November 2018

Good morning, ladies and gentlemen.

Thank you for the opportunity to share a few thoughts with you today.

Last year, we had a Goldilocks global economy. Inflation started picking up in the advanced economies, and in emerging markets, it was generally in line with targets. Growth was stronger, but without much evidence of overheating. Growth was also widely shared - most economies were accelerating. The world economy felt just right.

As you know, at the end of the Goldilocks story a family of bears comes home. Our Goldilocks tale has taken the same direction. The synchronisation of global growth has broken down this year, with the United States (US) surging ahead while other countries slow down. With unemployment at very low levels, the Federal Reserve has been raising rates, just as they told us they would. The combination of stronger US growth and higher rates has appreciated the dollar.