ISAAH MHLANGA: Reserve Bank has no control over supply-driven inflation
The SA Reserve Bank has no tools to control supply-driven inflation and administered prices. In fact, it should not seek to control them as it will only succeed in choking economic growth from the demand side at a time when we need all the growth we can get to drive employment growth.
The surge in global and domestic inflation is not primarily demand driven, but supply driven. This is a conundrum for the Reserve Bank as it gears up to continue normalising interest rates after the hike it administered last November...
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