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Reserve Bank governor Lesetja Kganyago. Picture: FREDDY MAVUNDA
“Reserve Bank governor Lesetja Kganyago has urged emerging markets, including SA, to consolidate their fiscal positions in coming years …” begins the first paragraph of an article on the front page of your newspaper.
No one would accuse Business Day of being sensationalist, but this is not the most thrilling of intros.What actually does it mean? Not just the meaning of “fiscal consolidation” — why is what the governor is saying important to us?
If he is urging his counterparts at the Treasury to cut spending or increase tax or both, is that just a nod to economic rectitude?
Does it signal that he will not hesitate to blame them when he believes he is forced to raise interest rates? Is there a rift between the Reserve Bank and the Treasury?
In other words, what is the real story, in words that ordinary non-economists might understand?
Reginald Rumney
Via email
JOIN THE DISCUSSION: Send us an email with your says to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: What are you trying to say, governor?
A response to a Business Day article
“Reserve Bank governor Lesetja Kganyago has urged emerging markets, including SA, to consolidate their fiscal positions in coming years …” begins the first paragraph of an article on the front page of your newspaper.
No one would accuse Business Day of being sensationalist, but this is not the most thrilling of intros. What actually does it mean? Not just the meaning of “fiscal consolidation” — why is what the governor is saying important to us?
If he is urging his counterparts at the Treasury to cut spending or increase tax or both, is that just a nod to economic rectitude?
Does it signal that he will not hesitate to blame them when he believes he is forced to raise interest rates? Is there a rift between the Reserve Bank and the Treasury?
In other words, what is the real story, in words that ordinary non-economists might understand?
Reginald Rumney
Via email
JOIN THE DISCUSSION: Send us an email with your says to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.