January 29th, local time, according to South African media reports, Danyager, president of the Reserve Bank of South Africa, said that if there is a third pandemic, the Central Bank of South Africa has the ability to adopt economic austerity policies to stimulate economic development.
In an interview with TV on January 28, Danyager said that the Reserve Bank of South Africa was prepared for the third wave of the pandemic that could hit South Africa and affect South Africa’s economic activities.
The Reserve Bank of South Africa has maintained the benchmark interest rate at an all-time low of 3.5% for three consecutive times recently.
After the third wave of the pandemic, the Reserve Bank of South Africa will adopt a tightening policy and raise the benchmark interest rate.
The World Bank predicts that South Africa’s economy will resume growth in 2021.
South Africa itself expects GDP to grow by 3.6% this year, which is higher than the International Monetary Fund’s growth forecast of 2.8%.
South Africa could raise its benchmark interest rate by 0.25% twice in Q2 and Q3 2021, according to the RBI quarterly forecast model.
