EDITORIAL: The case for keeping rates stable
The Reserve Bank’s final monetary policy committee meeting for 2018 is scheduled for next week
In exactly a week the Reserve Bank will be concluding another policy meeting. On the face of it, this one should be a simpler affair than the September meeting when policymakers were split by one vote, in favour of staying put. The good news is that a rate increase, which seemed more likely than not a few months ago, can now more or less be ruled out. While the external environment hasn’t suddenly become rosy, it does have a more serene feel to it. For one thing, currency collapses and emergency rate hikes from Turkey to Argentina are no longer dominating the conversation. There is reason to be concerned about headlines coming out of Europe and the potential for some market discomfort. Italy, the euro area’s biggest debtor nation, is at odds with the European Commission over its budget, with a risk that the populists in charge in Rome won’t back away from their war of words with Brussels, a vote-winning strategy, even if economically costly. While nobody is expecting another full-bl...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.