Business Day Spotlight
PODCAST | Economic news of the week: An aggressive approach to stimulus for Covid-19
In this edition of the Business Day Spotlight, we take a look at the week’s top economic news, including interest rates, the rand strengthening ,and the state of global markets.
Our host Mudiwa Gavaza is joined by Ndumiso Hadebe, economist and director for Pax Africana Holdings.
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The discussion starts with a look at the Reserve Bank’s recent monetary policy committee decision.
The Bank, which had reduced the repo rate by a full percentage point in each of its meetings in March and April, reduced the repo rate by 50 basis points on Thursday to 3.75%.
In light of this, Hadebe highlights some of the policy responses of the US Federal Reserve to the coronavirus crisis and how it has likely influenced central banks around the world, including Reserve Bank governor Lesetja Kganyago and his team.
Hadebe then talks about retail sales, which increased in February, rising 2% year on year. This was mainly due to sales at general dealers and all other retailers, including sporting and second-hand goods.
The discussion also touches on the strengthening of the rand in recent weeks, an outlook for the economy. and the merits of printing money as an appropriate policy response to the Covid-19 crisis.
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• Business Day Spotlight is a MultimediaLIVE production.