The bright side of the Reserve Bank’s decision to hike rates

One positive is that the higher rate makes South Africa a much more attractive destination for investors, Petousis said.
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Good luck with that one. Another "economist" living on another planet. The investors that really has the money to make any meaningful difference are already not allowed by their own laws to invest in SA due to its junk status.

The only bright side I see is that this will affect the economy so badly, most of the companies employing these "economists" will soon downscale and retrench their staff and we will be rid of these happy chappies who think everything is great.
 
So difficult to open any newspaper or news article in South Africa these days. Problem is, if you do not read it, you are uninformed. If you do read it, you are misinformed. Crazy times.
 
zerocool2009 said:
Having debt is one piece of the puzzle why rates are lifted. Go and read up guys

Higher rates attract foreign investment.
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Yeah no, not while your country has a junk credit rating. It does indeed work for those that are not junk. Investment houses with trillions of Dollars are not allowed by law to invest client funds in countries with junk credit ratings.
 
rvZA said:
Yeah no, not while your country has a junk credit rating. It does indeed work for those that are not junk. Investment houses with trillions of Dollars are not allowed by law to invest client funds in countries with junk credit ratings.
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Jy sien regtig net die bad in alles ne. Worry oor iets binne jou beheer! Jy kan rose poep : junk status gaan nie change nie.

Worry oor iets in jou beheer!
 
zerocool2009 said:
Jy sien regtig net die bad in alles ne. Worry oor iets binne jou beheer! Jy kan rose poep : junk status gaan nie change nie.

Worry oor iets in jou beheer!
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En daar het jy dit. Vergeet foreign investments. Gaan nie gebeur nie. Gebeur nou al vir paar jare nie.
 
DreamKing said:
is this guy brain damaged?
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Let's ask BingGPT.

Question:
what is the reason for a country's reserve bank to increase its interest rates? What are the benefits of doing such a thing?
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Answer:
The reason for a country's reserve bank to increase its interest rates is to try and tackle rising inflation¹. Higher interest rates make it more expensive for people and companies to borrow money from banks, which should reduce spending and consumer demand, which in turn will often lead to declines in inflation¹².

The benefits of increasing interest rates include reducing inflation, which can help stabilize the economy and prevent it from overheating¹². However, higher interest rates can also lead to slower economic growth and higher unemployment rates¹⁴.
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So it's a good thing, provided that the economy is positioned in a way where increasing interest rates doesn't only lead to stifling economic growth.
 
raising rates does nothing to combat inflation, thats just the reason they give

banks need to reduce money supply or stop increasing money supply, that is the only way to stop or reduce inflation
 
zerocool2009 said:
Go read up a bit why interest rates are changes (alot more than only debt, currency value, foreign investment).
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I have, but clearly you have not. I fully understand how the mechanisms of MP work, and also why they do not work in South Africa. Most MP theory was written from a western capitalist perspective. As an example, MP theroy does not account for a Electricity monopoly like Eskom hiking prices by multiples of the inflation rate.

On top of that, I own multiple businesses in 7 different countries. My best friend is a hedge fund manager specialising in emerging economies based out of Chicago, so between us I think we know a lot more than you do. You are out of your depth in this converation. But that is the fun thing about the internet, even the clueless have a say.
 
Vorastra said:
Let's ask BingGPT.

Question:


Answer:



So it's a good thing, provided that the economy is positioned in a way where increasing interest rates doesn't only lead to stifling economic growth.
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Then it is good for SA, there is no growth to stifle :)
 
WollieVerstege said:
I have, but clearly you have not. I fully understand how the mechanisms of MP work, and also why they do not work in South Africa. Most MP theory was written from a western capitalist perspective. As an example, MP theroy does not account for a Electricity monopoly like Eskom hiking prices by multiples of the inflation rate.

On top of that, I own multiple businesses in 7 different countries. My best friend is a hedge fund manager specialising in emerging economies based out of Chicago, so between us I think we know a lot more than you do. You are out of your depth in this converation. But that is the fun thing about the internet, even the clueless have a say.
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On that nice note, I hope it goes up much more! I am so well prepared! L O L
 
Vorastra said:
Let's ask BingGPT.

Question:


Answer:



So it's a good thing, provided that the economy is positioned in a way where increasing interest rates doesn't only lead to stifling economic growth.
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Have you seen South Africa's unemployment rate?
 
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