Hiking rates in late 2018 was the right call, says Lesetja Kganyago
In July, the MPC cut interest rates by 25 basis points, effectively reversing 2018’s hike, citing lower growth and inflation expectations
26 July 2019 - 11:08
SA Reserve Bank governor Lesetja Kganyago has stood by the monetary policy committee’s (MPC’s) contested decision to hike interest rates in November 2018, calling the move “appropriate” at the time.
The Bank, which has been at the centre of a heated debate over its ownership and mandate to protect the value of the rand, faced intense backlash to the hike given the weak economy and strain on consumers. The ANC and its alliance partners have long argued that the Bank should also include economic growth and employment levels as policy goals, as targeting inflation tends to lead to higher interest rates...
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