Were it not for our economic malaise and the negative growth numbers that came out of Statistics SA the day before, the “quantity easing” part of the ANC’s post-lekgotla statement might have been dismissed as a typo. However, the debate, for all its faults and status as cannon fodder in the narrow factional stand-off within the party, has again placed this issue at the centre of the public conversation.

Even the governor of the Reserve Bank accepts that there is a tradeoff between higher interest rates and output. He said as much in a lecture in Stellenbosch in March: “Inflation has not really been sufficiently low to get our high long-term interest rates lower, and this creates an economic cost that weighs more heavily on job creation as time goes on”...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now