Lesetja Kganyago: ‘You fix your roof before the rain comes’
Despite the pressure on the Reserve Bank to do more to counter the impact of the coronavirus, it is determined to stay in its lane. Quasi-fiscal measures are out – for now
There is a growing chorus for SA to adopt a war footing to fight the coronavirus by copying the outsize responses of major developed economies. But with limited fiscal space, SA just doesn’t have the same firepower. Or could the Reserve Bank be doing more?
With more than 1-million people infected globally, the lesson from abroad is to go early and go big in responding to the outbreak, and to employ all possible monetary and fiscal policy tools.