Interest Rates Unchanged

Drop rates, exchange rate crashes, high inflation, people spend less, business takes a hit, businesses start closing, leads to massive unemployment, etc.

The only factor that will change things is improved productivity - and that will not happen under the ANC.
 
I thumbsuck that no matter what rates are, someone will get hurt. I remember the glory days of Stals and co. Fighting the world with high rates and hurting the small oke in the process. I sometimes wonder if they didnt plan it that way in order to cash in on forced housing sales, especially when you look at the growth in prices in the early and middle 2000's. I am just glad I dont have that responsibility.
 
Raising rates doesn't do anything positive either. It's economic snake oil.
 
noxibox said:
Raising rates doesn't do anything positive either. It's economic snake oil.
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Interest rates should be about 2% above inflation. Otherwise the economy does not work.

Inflation is going to be heading up at a rate of knots.
 
It obviously depends on the interest rates of what. You want long term loans to be above inflation and short-term savings to be below inflation.
 
Garson007 said:
It obviously depends on the interest rates of what. You want long term loans loans to be above inflation and short-term savings to be below inflation.
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Sure, but inflation is going only one way : As determined by strikes, poor productivity, e-tolls, FX Rate, corruption, etc, etc.

Interest rates need to start going up right now in order to avoid serious damage later.
 
Cosatu Disappointed with Repo Rate

Cosatu said on Friday it was disappointed by the SARB's decision to keep the repo rate unchanged at five percent.

"The committee has missed yet another opportunity to save and create jobs by giving a boost to growth and investment and to encourage emerging businesses," Congress of SA Trade Unions spokesman Patrick Craven said in a statement.

"Unemployed workers in particular will be dismayed at yet another conservative monetary policy decision, based on a groundless fear of rising inflation, when by far the biggest problem in our economy is the crisis of massive unemployment and widespread poverty."

SA Reserve Bank governor Gill Marcus said on Thursday that the bank's monetary policy committee was concerned about the deteriorating outlook for the South African economy.

Risks included difficult labour relations, increased wage settlements, higher electricity prices, and a volatile rand.

Craven said it was "worrisome" that the decision came soon after Statistics SA's Quarterly Labour Force Survey found the number of unemployed people increased by 100,000 to 4.6 million between the fourth quarter of 2012 and the first quarter of 2013.

"[The] MPC appears to live in a different world, and clearly cannot, or will not, see the devastating consequences of their slavish adherence to discredited monetary policies, based on a misguided fear of inflation," Craven said.

He took exception to Marcus's call for restraint in wage increases, and her comments that the slow pace of employment in the private sector was undermined by the "fractious nature of recent wage negotiations".


Source : Sapa /aa/tk/th
Date : 24 May 2013 08:56
 
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