PRETORIA, March 30 Below are comments from South
African Reserve Bank Governor Lesetja Kganyago on Thursday as he
announced the central bank's latest decision on its benchmark
"While most measures of emerging market risk have narrowed
over recent months, those for South Africa have widened again
over the past few days. The rand has also been underpinned by
favourable terms of trade trends."
"The domestic growth outlook remains weak following the
negative growth recorded in the fourth quarter of 2016."
"Low growth in gross fixed capital formation remains a
downside risk to growth in the short term."
"Overall the MPC accesses the risk to inflation outlook to
be moderately on the upside mainly due to the high degree of
exchange rate uncertainty."
"Since the previous MPC meeting the inflation outlook has
improved. However, the risk to the inflation forecast has been
affected by the reaction of the of the exchange rate to the
current elevated levels of political uncertainty."
"The MPC is concerned that increased political uncertainty
could impact negatively on private sector investment and
household consumption expenditure, and further undermine
employment growth. The risks to the growth outlook are therefore
assessed to be on the downside."
(Reporting by TJ Strydom and Olivia Kumwenda-Mtambo; Editing by