DUMA GQUBULE: Monetary policy committee wimps out in the face of depression
Given the scale of the crisis, there is no reason the Reserve Bank could not have reduced the repo rate to zero
If there were any doubts that the SA Reserve Bank’s monetary policy committee must fall, last week’s feeble response to the country’s worst economic depression in more than a century has provided proof that it is not fit for purpose.
According to Business for SA’s Martin Kingston, the economy could contract by up to 15% in 2020 after taking into account the effect of the government’s R500bn stimulus package. By definition, this means the package is not adequate.