LUKANYO MNYANDA: Interest rate decision will bring curious QE debate
Other than lowering borrowing costs for the government, it's hard to make an argument for QE
19 July 2020 - 19:11
Considering the latest inflation report, it might seem odd that economists are so divided on what the Reserve Bank will do when it wraps up its latest policy-making decision on Thursday. An inflation rate that’s almost a full percentage point below the lower end of the 3%-6% target range would seem to make for a compelling case for more rate cuts.
Advocates of quantitative easing, or money printing, will be left fuming at its lack of action. Since many of them were calling for QE in 2019 already, when inflation averaged exactly twice the 2.1% recorded in May, that should not come as a surprise...
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