South African central bank governor Kganyago emphasized that the bank is not considering cutting interest rates while inflation remains above its desired level. Kganyago stated that the bank’s real rates are not exceptionally high, but inflation needs to decrease to their target anchor of 4.5%. Despite easing inflation to 5.5% YoY in November, primarily due to lower fuel prices, the bank maintains that inflationary pressures, especially in categories like food, are still high. The central bank has kept its benchmark interest rate at a 14-year high of 8.25% since May 2023 and is expected to maintain this rate at its next meeting.