Davos: SARB Governor on South Africa Inflation Target, Growth Outlook, Federal Reserve

• South Africa's macro environment is in a 'very good space' due to monetary policy reform (new 3% inflation target), fiscal consolidation, and structural reforms.
• Growth is expected at around 1.4% this year, double the previous year, with higher potential growth anticipated.
• Inflation is considered low, with expectations converging to the new 3% target, and the central bank's model forecasts two further interest rate reductions.

South African Reserve Bank Governor Lesetja Kganyago describes the nation's macro environment as 'in a very good space,' driven by monetary policy reforms, fiscal consolidation, and structural changes. He anticipates modest growth of around 1.4% this year, with inflation converging towards a new, lower 3% target by 2027, potentially leading to further interest rate cuts.