"Interest rates are negative in real terms. That is the 3.5% is below projected inflation. That is reflective of an accommodative stance. It can't continue forever," Kganyago said.
"At some stage the savings pool will say: No, this is favouring borrowers over us, the savers, and they will re-price you.
JOHANNESBURG: South Africa's record low lending rates, which the central bank kept unchanged on Thursday despite rate hikes by fellow emerging markets, will not last forever, Governor Lesetja Kganyago said on Friday during an online address.
"Interest rates are negative in real terms. That is the 3.5% is below projected inflation. That is reflective of an accommodative stance. It can't continue forever," Kganyago said.
"At some stage the savings pool will say: No, this is favouring borrowers over us, the savers, and they will re-price you.
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