SARB Governor Says Economy Likely To Recover In Coming Months

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The South African economy is set to recover somewhat in the coming months, though the rebound would be slow and protracted, Reserve Bank Governor Tito Mboweni said Thursday.

"Although the worst of the global downturn appears to be behind us, the recovery is expected to be slow and protracted," Mboweni said in a speech at the 89th annual general meeting of shareholders.

In the first two quarters of 2009, the South African economy contracted at annualized rates of 6.4% and 3%, respectively.

He noted that the country's well-regulated banking system was relatively insulated from the financial crisis.

Moreover, he said domestic inflation is expected to continue its moderating trend as a result of downward pressures from weak domestic demand and lower commodity prices.

"The Bank will continue to strive to achieve price stability within a flexible inflation targeting framework in the interest of sustainable economic growth," he said.

Mboweni will leave the central bank in November, completing his second term, and Gill Marcus will fill his vacancy.

The South African economy is set to recover somewhat in the coming months, though the rebound would be slow and protracted, Reserve Bank Governor Tito Mboweni said Thursday. (Market News Provided by RTTNews)