EDITORIAL: Deep rate cut only one side of the equation
The economy needs structural reform to stimulate a supply-side response
18 March 2020 - 05:10
Something that seems to be very odd happened in the currency markets on Tuesday. SA’s currency emerged among the best performers against the dollar, jumping almost 2% just after 5.30pm local time.
On the face of it, this might not be the type of action one would expect in an environment where the Reserve Bank is widely expected to slash rates. Lower rates should, all things being equal, reduce the appeal of holding local assets, especially in an environment where investors are driven more by fear than greed in the wake of the coronavirus outbreak...
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