Bank’s inflation success has created policy space to support economy
MPC member Chris Loewald says having inflation under control gives us policy space to respond to crises
The SA Reserve Bank's success in curbing inflation has given it policy room to support the economy during the coronavirus crisis, says Chris Loewald, head of the Bank's economic research department.
“Low and stable inflation outcomes support permanently lower interest rates, in turn supporting sustainable growth,” Loewald wrote in an article in Business Day (https://www.businesslive.co.za/bd/opinion/2020-04-02-bothas-critique-misses-sa-monetary-policy-complexity/). “And, as we are seeing in today’s very difficult conditions, having inflation under control gives us policy space to respond to crises, helping to ease an exceedingly difficult economic adjustment for the country.”