22 July 2022 1 Min Read
BUSINESS WATCH WITH MICHAEL AVERY
WATCH: The week in perspective
Michael Avery talks to Warwick Lucas, Isaah Mhlanga and Raymond Parsons
in Companies by Michael Avery
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It was a week dominated by central banks with the ECB hiking by 50 basis points and the SARB by 75.
As Brian Kantor opined in Business Day this week, the best reason to expect inflation to subside in the US, Europe and SA is that demand for goods and many services is already well depressed, thanks to higher prices. Spending is no longer being supported by additional income subsidies or by rapid growth in money supply and bank credit. Money supply in the US (M2) has ground to a halt.
The essential question is still to be answered. Are the US and Europe heading for recession aided and abetted by central banks intent on raising interest rates too aggressively and indeed unnecessarily fighting the last war? Central banks should know better than to lead their economies into recession while inflation is moving in the right direction and their economies head in the wrong direction.
Joining Michael Avery to wrap up the week is Warwick Lucas, head of Galileo Securities, Isaah Mhlanga, chief economist at Alex Forbes and Raymond Parsons, Professor in the School of Business and Governance at Northwest University.
As Brian Kantor opined in Business Day this week, the best reason to expect inflation to subside in the US, Europe and SA is that demand for goods and many services is already well depressed, thanks to higher prices. Spending is no longer being supported by additional income subsidies or by rapid growth in money supply and bank credit. Money supply in the US (M2) has ground to a halt.
The essential question is still to be answered. Are the US and Europe heading for recession aided and abetted by central banks intent on raising interest rates too aggressively and indeed unnecessarily fighting the last war? Central banks should know better than to lead their economies into recession while inflation is moving in the right direction and their economies head in the wrong direction.
Joining Michael Avery to wrap up the week is Warwick Lucas, head of Galileo Securities, Isaah Mhlanga, chief economist at Alex Forbes and Raymond Parsons, Professor in the School of Business and Governance at Northwest University.
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