EDITORIAL: Bank’s 75-pointer could be the right medicine
The hawkish move by Lesetja Kganyago and his team will be vindicated if it delivers on price stability
22 July 2022 - 05:06
When the Reserve Bank’s monetary policy committee goes into extensive detail on the inflation outlook in its post-meeting statement, you know it’s preparing to say something dramatic. So it was on Thursday, when the committee hiked interest rates by 75 basis points (bps).
That was more than most in the market were expecting. It was less than the preference of one member, who favoured an even steeper hike of 100 bps. Which is how you know the Bank is really worried about what’s happening to inflation, and more particularly to inflation expectations...
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.
This article is free to read if you sign up or sign in.
If you have already registered or subscribed, please sign in to continue.
Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.