BUSINESS DAY TV: Cutting rates is only a quick fix for weakness in the economy
RMB economist Isaah Mhlanga talks to Business Day TV about a sharp drop in the RMB/BER business confidence index for the second quarter, and whether it can be attributed to President Jacob Zuma’s Cabinet reshuffle and subsequent credit-rating downgrades BUSINESS DAY TV: Business confidence has dropped to 2009 recession levels this past quarter, dragged down by weak business activity and concerns over politics. That’s according to the RMB/BER business confidence index, and joining us in the studio to discuss it further is RMB economist Isaah Mhlanga. Isaah, so you do point to political uncertainty and the economic policy outlook in the statement today, but you also talk about a persistently weak business activity cycle. Do you think that’s as a result, really, of the changes that we have seen this year, particularly in the Cabinet and the subsequent ratings downgrades? ISAAH MHLANGA: It’s important to note that yes, the politics could have played a role but if you look in the underly...
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