Reserve Bank must avoid short road to inflationary oblivion
Given the bluntness of the SA Reserve Bank’s instruments, it is far better to address the structural shortcomings of the economy directly
To say that all is not well with the SA economy is an understatement. First-quarter economic growth came in at -3.2% and unemployment is in excess of 27%. Fiscal policy is unsustainable and state-owned enterprises (SOEs), especially Eskom and SAA, see mounting debts in addition to mounting management and operational troubles.
For ANC secretary-general to announce in the midst of all that the intention of the governing party to change the Reserve Bank’s mandate and use the money press to relieve government’s debt pressures, just added oil to the already high-burning fires of uncertainty.