BRIAN KANTOR: A shock to the system — and getting over it
The interest rates set by the Reserve Bank will make no difference to the rand or the inflation rate
19 May 2023 - 05:00
The latest shock to the SA currency and bond markets is of significant scale, similar to those of 2001, 2008-09 (linked to the global financial crisis), the Nenegate shock of 2015-16, and the Covid-19 shock of 2020.
This shock is entirely of our own making, the punishing result of a failure to keep the lights on and choose our friends more carefully. We know this not only by the abruptly higher rand cost of a dollar or euro but by the poor performance of the rand against other emerging-market and commodity currencies...
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