The Reserve Bank’s interest rate hike this week of a quarter of a percent to 3.75% from an all-time low of 3.5% has angered many South Africans who feel their December has been ruined by higher interest costs.

To my surprise, some colleagues whom I expected to have better understanding of monetary policy said the decision was irrational. I have some sympathy for a ruined December but the decision was a matter of when, not if, and far from irrational...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now