Reserve Bank governor Tito Mboweni has said there are tentative signs of a recovery in the global economy, though he added that South Africa’s growth is expected to remain muted this year.

Mboweni said there are signs that the worst of the global recession is now past,

"Our own situation is a bit difficult but hopefully the fiscal measures that have been taken will be of assistance, particularly provided with the monetary stimulus that has been provided already," Reuters reported Mboweni as saying at the bank’s biannual monetary policy review.

The governor also cautioned that the public should not expect interest rate cuts every month.

Fin24 also reported on the event, quoting Mboweni as saying that lending rates by South Africa’s banks do not have to be so much higher than the repo rate, as he appealed to them for more competition on their spreads relative to the repo rate.

"I have tried to use moral suasion. I would like to appeal to private banks to think about the spread. It does not have to be the same between bank to bank - there needs to be some competition here," said Mboweni.

The Reserve Bank has slashed its repo lending rate by 350 basis points since December to 8.50%, having announced a 100 basis point cut at each of the last three meetings.