Cape Town had to deal with 90 fires last Friday alone. I'm sure the world's financial regulators and power brokers in Davos recently would sympathise. After all, they have spent the past year trying to put out fires. Cape Town had to deal with 90 fires last Friday alone. I'm sure the world's financial regulators and power brokers in Davos recently would sympathise. After all, they have spent the past year trying to put out fires. At its MPC meeting, the SA Reserve Bank finally appeared to take note of the immobilisation of the global economy since October. Noting that he had picked up a dose of flu in Davos, governor Tito Mboweni announced that the MPC had decided to cut the repo rate by 100 basis points (bp) last week. The accompanying dovish statement highlighted the dramatic change in conditions since the MPC grudgingly cut the rate by 50bp in December 2008. The main reason for the about-turn is the sharp deterioration in the growth outlook in recent months. In fact, t...
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