Mboweni hints at rate hike!!

Slooth said:
Was he quoted after the resent hikes?
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Aug 21 2007 07:27 PM

Phumza Macanda

Polokwane - General price pressures are evident in the South African economy, which is growing above its potential, central bank Governor Tito Mboweni said on Tuesday.

Mboweni also told students in the northern city of Polokwane interest rates were the only tool to tame generalised inflation, raising the possibility that rates may have to rise further this year.
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Yup.
 
honestly, there must be other ways of curbing inflation.

Penalizing those who are actively working in the economy seems like bad economics.
 
I doubt this is a comment of today.

Would he really comment on 2 months ahead.

He has stated 2 weeks ago that the effects of last years increases is starting to show. If I will hike in interest rate again, I would be REALLy shocked!

2 Things pushing up inflation in recent months:

1) Petrol prices (due to Brent Crude)
2) Food Prices (many factors, but dry season and petrol prices are some)

Like he said, not much they can do about the 2 factors causing the most damage!
 
kiepie said:
I doubt this is a comment of today.

Would he really comment on 2 months ahead.

He has stated 2 weeks ago that the effects of last years increases is starting to show. If I will hike in interest rate again, I would be REALLy shocked!

2 Things pushing up inflation in recent months:

1) Petrol prices (due to Brent Crude)
2) Food Prices (many factors, but dry season and petrol prices are some)

Like he said, not much they can do about the 2 factors causing the most damage!
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Petrol Prices - Can the goverment lesson the blow by decressing their levy?

Food Prices - I don't understand the excuse of a dry session; when it's wet do the prices come down?
 
"Our potential output is 4.5% a year (but) we are already growing at 5%. That is far above potential and that is why we have inflation. Our growth is inflationary."
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Now I wonder why other countries shows the opposite. Look at growth in China, India and others. Also while the rest of the world is curbing or even reducing interest we are raising ????????????????

Bring back the real king of the SA finances. Tito was riding on his achievements and are slowly fsucking it up.
 
Slooth said:
Petrol Prices - Can the goverment lesson the blow by decressing their levy?
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Government will not reduce their levies.
Food Prices - I don't understand the excuse of a dry session; when it's wet do the prices come down?
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Yes, Summer sees the most agricultural activity in SA (everything from fruit to meat becomes more readily available). Winter is mostly a consuming period, whereas Summer sees greater production.

kiepie forgot to mention labour. In the last 2 years general labour has significantly become more expensive, resulting in increased inflation as well.
 
NoADSLyet said:
Now I wonder why other countries shows the opposite. Look at growth in China, India and others. Also while the rest of the world is curbing or even reducing interest we are raising ????????????????

Bring back the real king of the SA finances. Tito was riding on his achievements and are slowly fsucking it up.
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lol - the harder we work, the higher the growth, and the more we get punished?

great
 
if you actually read his quotes he says nothing about inflation going forward. He just states that even if you strip food and fuel, inflation has been going up. A fact that the numbers back up.
 
milomak said:
if you actually read his quotes he says nothing about inflation going forward. He just states that even if you strip food and fuel, inflation has been going up. A fact that the numbers back up.
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Yeah - I read that article twice, could not see where he "hinted" at anything.
Maybe I am doff and some one can spell it out for me - until then, just a gernalist(sic) doing his schtick.
 
Increasing inflation is often a sign of instability in a country as well. History shows what happens to countries that mismanage themselves into high inflation.

I expect that SA will see much higher inflation down the road.
 
Was thinking the other day... why doesn't SA have its own car brand? We make enough of the damned things. If we can turn out something like the G6, Ratel or Rooivalk, we should be able to manage a car.
 
Leitmotif said:
Was thinking the other day... why doesn't SA have its own car brand? We make enough of the damned things. If we can turn out something like the G6, Ratel or Rooivalk, we should be able to manage a car.
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SA does have car makers... but they are not sold to the SA market! (Sports cars for Europe only!)
 
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