EPISODE · Jan 27, 2023 · 2 MIN
If you don't like the higher repo rate, what are the alternatives?
from Die ekonomie minuut · host Waldo Krugell
The Reserve Bank increased the repo rate by 25 basis points yesterday. In other words, 0.25 of a percentage point. This means that you will have a slightly larger instalment on your debt. There will be comments today saying that the Reserve Bank has an unhealthy obsession with the inflation target band of 3 to 6%, that inflation is falling, that economic growth has already been knocked flat and now they are increasing the repo rate again. This touches on the debate about the mandate of the Reserve Bank - shouldn't they also be thinking about economic growth and employment? I think Governor Kganyago has answered the question time and again, namely that the economy cannot sustainably grow and create jobs if the inflation rate is high or unstable. What I don't see is what the critics propose as an alternative. * The Economics Minute podcast is sponsored by the the NWU Business School.
What this episode covers
The Reserve Bank increased the repo rate by 25 basis points yesterday. In other words, 0.25 of a percentage point. This means that you will have a slightly larger instalment on your debt. There will be comments today saying that the Reserve Bank has an unhealthy obsession with the inflation target band of 3 to 6%, that inflation is falling, that economic growth has already been knocked flat and now they are increasing the repo rate again. This touches on the debate about the mandate of the Reserve Bank - shouldn't they also be thinking about economic growth and employment? I think Governor Kganyago has answered the question time and again, namely that the economy cannot sustainably grow and create jobs if the inflation rate is high or unstable. What I don't see is what the critics propose as an alternative. * The Economics Minute podcast is sponsored by the the NWU Business School.
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If you don't like the higher repo rate, what are the alternatives?
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