Reserve Bank’s interest rate hike pulled into question

[BusinessTech]

Reserve Bank’s interest rate hike pulled into question

South Africa’s main industry body questioned the central bank’s decision to raise interest rates at a time of weak economic growth and fragile business sentiment amid the war in Iran.

 

[My_King]

But it stopped the war, so we have that

 

[saturnz]

the main industry body has no idea what it is talking about

the interest rate should be well above 20%

 

[thestaggy]

the main industry body has no idea what it is talking about

the interest rate should be well above 20%

And then how do we live?

 

[saturnz]

And then how do we live?

the same way people in the 80s lived when interest rates was 25%

 

[Sensorei]

And then how do we live?

Like we should. Without relying on taking debt when we want stuff, and living beyond our means.

 

[WollieVerstege]

I to question it as the only thing interest rate increases will do is to make inflation worse.

 

[thestaggy]

the same way people in the 80s lived when interest rates was 25%

Are salaries matching the inflation that these high interest rates cause?

 

[thestaggy]

Like we should. Without relying on taking debt when we want stuff, and living beyond our means.

The average South African is counting pennies to survive, and no, we are not trying to keep up with the Jonses.

 

[Blu82]

Like we should. Without relying on taking debt when we want stuff, and living beyond our means.

In the 80's you could run my household on a single salary but today you need two.

 

[Pax]

And then how do we live?

Stop borrowing money and live within your means.....that is the purpose or aim of raising interest rates.

 

[saturnz]

Are salaries matching the inflation that these high interest rates cause?

high interest rates will dampen inflation

low interest rates are inflationary

go learn before commenting okay

 

[OCP]

But it stopped the war, so we have that

no - it's still going ... wait an agreement has been reached ... no wait they still shooting at each other ... ok it's over .. oh ffs why they fighting again ... Trumps says it over! .... Iran says no settlement yet ... I give up ...

 

[sensus communis]

It is not the citizens over spending , it is the ANC government

 

[thestaggy]

Stop borrowing money and live within your means.....that is the purpose or aim of raising interest rates.

Are we pretending there isn't a cost of living crisis?

The fuel price has shot up 38% (95) in 3 months, with diesel going up 50-60% in the same period.
The rise in the price of diesel specifically has filtered through into the price of basic goods.
Gas has gone up 20-25% (we have a gas oven and gas geyser)
Medical aid increased by 7%

My salary hasn't moved an inch.

I buy R1000 electricity a month. Switch lights on only in the room where I need them. I barely switch my gaming PC on anymore (don't worry, I saved and bought components cash) because it chows electricity.

It is a bit cheeky to tell people to live within their means when millions of us are cutting where we can and scraping by.

 

[My_King]

no - it's still going ... wait an agreement has been reached ... no wait they still shooting at each other ... ok it's over .. oh ffs why they fighting again ... Trumps says it over! .... Iran says no settlement yet ... I give up ...

Well, let's increase the repo rate again, that will end the war.

 

[thestaggy]

high interest rates will dampen inflation

low interest rates are inflationary

go learn before commenting okay

View attachment 1914515

Perhaps try not being a cvnt when someone is looking for honest discussion?

Your AI reply ignores reality by not accounting for the soaring cost of living in your ideal world. Your high interest rates reduce household spending. At present, households are under extreme pressure to even afford the basics. Your high interest rates are not going to encourage saving when households have less and less money to save.

 

[Pax]

Are we pretending there isn't a cost of living crisis?

The fuel price has shot up 38% (95) in 3 months, with diesel going up 50-60% in the same period.
The rise in the price of diesel specifically has filtered through into the price of basic goods.
Gas has gone up 20-25% (we have a gas oven and gas geyser)
Medical aid increased by 7%

My salary hasn't moved an inch.

I buy R1000 electricity a month. Switch lights on only in the room where I need them. I barely switch my gaming PC on anymore (don't worry, I saved and bought components cash) because it chows electricity.

It is a bit cheeky to tell people to live within their means when millions of us are cutting where we can and scraping by.

You clearly cannot afford your current lifestyle.

 

[thestaggy]

You clearly cannot afford your current lifestyle.

I see you are just going to continue to pretend that we are not experiencing a cost of living crisis.

 

[saturnz]

Perhaps try not being a cvnt when someone is looking for honest discussion?

Your AI reply ignores reality by not accounting for the soaring cost of living in your ideal world. Your high interest rates reduce household spending. At present, households are under extreme pressure to even afford the basics. Your high interest rates are not going to encourage saving when households have less and less money to save.

LOL @ looking for honest discussion

cool story bro, you made a confident assertion that was completely false

have you got any evidence that high interest rates causes inflation

you made the claim, now provide your non AI citation