Trump Tariffs Pose Inflation Risk, Says Kganyago

South African central bank governor Lesetja Kganyago warned that US protectionist policies are potentially inflationary and risk derailing future interest-rate cuts, while adding that there are too many "moving parts" to be certain about the outlook.

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Donald Trump, who was sworn in as US president on Monday, said he plans to impose previously threatened tariffs of as much as 25% on Mexico and Canada by 1 February.

"To the extent that the measures taken are inflationary, it could slow down the disinflation process that the central banks had so steadfastly worked on since the great inflation of 2022," Kganyago said in an interview with Bloomberg TV at the World Economic Forum in Davos on Tuesday.