PETER ATTARD MONTALTO: Is the Reserve Bank a one-trick pony on inflation?
Amid crises there is a need to be constantly on the lookout and stress-test policy responses for myths
It is funny how myths stick around and fester. SA is of course full of them and they infect the discourse.
It was a sheer delight to see the reaction of our comrades on the left to the Reserve Bank’s stonking hike of 75 basis point (bps) last week. I thoroughly recommend everyone to read it. The idea is rehearsed that the monetary policy committee (MPC) is somehow lacking in flexibility and lacks credibility because it is hiking in response to a supply shock as inflation climbs with higher petrol and food prices. The Bank is labelled as “trapped because of its one-dimensional, and one trick pony response to inflation”...
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