Wednesday, October 23, 2013

South Africa cbank "very supportive" in monetary policy: finance minister Gordhan


JOHANNESBURG (Reuters) - South Africa's Reserve Bank has been very supportive to growth in its monetary policy, which has shown the right level of coordination with fiscal policy, Finance Minister Pravin Gordhan said on Wednesday.


The central bank has kept interest rates at a four decade low of 5 percent since a 50 basis point cut in July last year as it balances the need to aid economic growth with trying to keep inflation within a 3-6 percent target band.


"The Reserve Bank has been very supportive ... we've got the right level of coordination between fiscal and monetary policy, which are mutually supportive," Gordhan told Reuters after presenting a medium term budget to parliament.


A brake in inflation to 6.0 percent year-on-year in September from 6.4 percent previously was "a good sign", he added.

Source: http://news.yahoo.com/south-africa-cbank-very-supportive-monetary-policy-finance-155536110--business.html
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