geopolitics

Raising interest rates — bad idea

Yesterday, in response to rising inflation, the South African Reserve Bank raised interest rates by 50 basis points.

Once cannot really blame the team at the SARB who voted unanimouslyThey differed only in the quantum — one wanted a 25 basis points increase. in favour of raising interest rates — “The primary object of the South African Reserve Bank is to protect the value of the currency in the interest of balanced and sustainable economic growth in the Republic," says South Africa’s Constitution.

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