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”...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.