HILARY JOFFE: Why less is enough for the Reserve Bank
SA’s inflation rate is structurally high and that cannot be fixed by wholesale cuts to interest rates
20 September 2024 - 05:00
“Adventurism is not part of our monetary policy toolkit,” declaimed Reserve Bank governor Lesetja Kganyago after the monetary policy committee (MPC) finally implemented a first, cautious, 25 basis-point cut to its repo rate on Thursday.
One had to wonder whether the governor found US Federal Reserve chair Jerome Powell’s 50 basis-point cut a little adventurous for his taste. Certainly, the cutting cycle the Fed has now kicked off is a lot bolder than the one the Bank has in mind...
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