Reserve Bank governor Lesetja Kganyago. File picture: Waldo Swiegers/Bloomberg

Johannesburg - South Africa's central bank governor said on Monday it was too early to tell whether the recent downgrades of the country's credit to junk would push the economy in to a recession.

"It's too early to tell if we are in a recession," the Reserve Bank's (SARB) governor Lesetja Kganyago said at the regulator's Monetary Policy Review.

"The environment is pretty fluid ... With the downgrades, we expect the cost of capital to rise and that rising cost of capital could force businesses that wanted to invest to rethink some of their projects. That will have an impact on growth," he said.