PODCAST | Is raising rates the best tool to lower local inflation?

Most central banks around the world have steadily increased their interest rates in the past year to combat inflation levels caused by the Covid-19 pandemic.

This is the only monetary policy tool central banks can use to control demand-side inflation. However, countries like SA have a supply-side inflation challenge which is difficult to manage with increasing interest rates. 

In this podcast PSG Wealth CIO Adriaan Pask explains the difference between demand- and supply-side inflation and the tools needed to manage the different causes of inflation.

^{Affiliates of PSG Financial Services, which includes PSG Wealth, are authorised financial services providers. Visit Psg.co.za for more information.}

This article was sponsored by PSG Wealth.