LUKANYO MNYANDA: Reserve Bank should clarify inflation target
Questioning why the central bank is not as aggressive as the Fed or the ECB misses the crucial point that the other two economies have much lower price-rise rates
22 July 2019 - 05:06
The Reserve Bank, as was widely expected, delivered the first interest-rate cut in about 16 months, providing much, or insufficient — depending on one’s ideological leanings — relief for a battered economy and consumer.
Given that the European Central Bank is on a path towards a new round of quantitative easing and the Federal Reserve is set to cut rates in July, which reduces risks of a rand drop leading to a spike in imported inflation, it was predictable that some would argue that the Bank dropped the ball last week. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
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.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.