LUKANYO MNYANDA: Eskom and SAA are greater viral threats for Reserve Bank
Impact of coronavirus on the world economy and central bank policy is not as pressing as failing state-owned enterprises
While debate about the impact of the coronavirus on the world economy and central bank policy has picked up, it’s probably too early to involve the SA Reserve Bank in such debates.
There’s more than a month to go before the monetary policy committee, which attracted a degree of criticism in January for doing exactly what segments of the analyst community had been calling for, decides on interest rates again. And there’ll be no shortage of local risks for it to chew on between now and then, not least the latest developments on Eskom and SAA, which may have put paid to any hope the government will come up with anything resembling a credible plan to reduce the fiscal drag from state-owned enterprises (SOEs).