Mboweni 'no more Mr Nice Guy'

Where do you see prime by years end?

  • Unchanged (at 13%)

    Votes: 1 7.7%

  • Higher than present

    Votes: 12 92.3%

  • Lower than present

    Votes: 0 0.0%
  • Total voters
    13
I'm smiling and although this will hurt the majority, it must be long overdue.

"Some people might be saying Mr Mboweni is failing as inflation needs to be below 6% - but I say maybe we have been too nice with interest rates being too low," said Mboweni.
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duh

There was a handful of folks that suggested that the very first rate increase would've been better had it been a full 1%, others even asked for a shock 2% at the time to curb the reckless spending fueled by the banks, airlines, phone operators and everyone else and their dog that offered credit dare we say recklessly.

Perhaps they were right and maybe Tito will adopt this approach now.
 
Sneeky said:
There was a handful of folks that suggested that the very first rate increase would've been better had it been a full 1%, others even asked for a shock 2% at the time to curb the reckless spending fueled by the banks, airlines, phone operators and everyone else and their dog that offered credit dare we say recklessly.

Perhaps they were right and maybe Tito will adopt this approach now.
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Agreed, Tito had his chance on more than 1 occassion and he either left it on hold or only hiked by 50 basis points. I reckon he was guided by ole Thabo, who in his February nation address mentioned that there were other ways besides raising interest rates to fight infaltion. Guess, the reserve bank is not so independent after all... :0)
 
air said:
Agreed, Tito had his chance on more than 1 occassion and he either left it on hold or only hiked by 50 basis points. I reckon he was guided by ole Thabo, who in his February nation address mentioned that there were other ways besides raising interest rates to fight infaltion. Guess, the reserve bank is not so independent after all... :0)
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Please stop that. It is clear that you want to push politics into a clear economic case. Even though, Mr. Mboweni, announces the rate decisions. The decision on the path to take is undertaken by the Monetary Policy Committee, and they always give reasons why in a lenghty publication on their website and their reason's are always valid. As part of a major bank, the decisions of the MPC always agree with our model predictions. I must say I have admiration for the reserve bank even though I disagree with them on the reckless credit bit, which is another discussion all together. However, the central bank decisions are technical and not politically motivated.
 
As part of a major bank then, what can the public expect after the next MPC meeting Rooineck?
 
On the other hand, I dont feel its fair to "punish" the people for the current inflation shocker. Currently the factors driving it, is food prices as well as fuel. Raising the rates will have no effect on these factors
 
Gothan said:
On the other hand, I dont feel its fair to "punish" the people for the current inflation shocker. Currently the factors driving it, is food prices as well as fuel. Raising the rates will have no effect on these factors
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I agree they have no effect on oil prices and food prices...

Have a look at www.statssa.gov.za and click on the CPIX report of yesterday. The main contributers is the above.

Last year's interest rate hikes has not been totally filtered into the economy.
 
The measures of CPIX without food and fuel having been ticking up in previous months. It is the duty of the Reserve Bank to be "ahead of the curve" and so to some extent these hikes have also been to ensure that second round inflation effects do not creep in.
 
Rooinek said:
Please stop that. It is clear that you want to push politics into a clear economic case. Even though, Mr. Mboweni, announces the rate decisions. The decision on the path to take is undertaken by the Monetary Policy Committee, and they always give reasons why in a lenghty publication on their website and their reason's are always valid. As part of a major bank, the decisions of the MPC always agree with our model predictions. I must say I have admiration for the reserve bank even though I disagree with them on the reckless credit bit, which is another discussion all together. However, the central bank decisions are technical and not politically motivated.
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then I wonda for which person/s benefit that was? I personally am not privy to what occurs in the great halls of power and perhaps you are neither. To say that economics and politics are not in some way intertwined is in my opinion incorrect.
 
air as has already been stated all the facts are put on the table at these meetings, if you wanted to you can read the full scripts. Just drop it.

Back to the point, I am starting to get a bit worried about these interest rates, when I bought my house I catered in 5% breathing room before things started to get uncomfortable, one more interest rate and my 5% is gone...

I wonder how many other people are in a similar position to me, or am I the only stupid one :D
 
GavinMannion said:
air as has already been stated all the facts are put on the table at these meetings, if you wanted to you can read the full scripts. Just drop it.

Back to the point, I am starting to get a bit worried about these interest rates, when I bought my house I catered in 5% breathing room before things started to get uncomfortable, one more interest rate and my 5% is gone...

I wonder how many other people are in a similar position to me, or am I the only stupid one :D
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Dont worry, am sitting in the same boat, my problem is, I dont even life in the house I have a bond on, and am desperately trying to sell it, each interest rate hike is not helping the matter
 
Yup Gavin though the 5% you catered for is probably already gone, with the general cost of living increases in food, fuel, education, rates & taxes, etc.
The squeeze is on for many.
 
Sneeky said:
Yup Gavin though the 5% you catered for is probably already gone, with the general cost of living increases in food, fuel, education, rates & taxes, etc.
The squeeze is on for many.
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This unfortunately is true as well, luckily I don't have any HP or personal loans and only one credit card... So I can wing it for a while...

I need to go and point my boss in this threads general direction :D
 
Gavin, I am in the same boat as you.

The only other debt I do have is that three year old bakkie (not a 4x4, a little bantam).

The pinch I am feeling, besides the house, is fuel (as I do not get a company subsidy), school fees, food (teenage boys are like a ravenous flesh eating disease that never stop attacking the fridge!) and clothes for my kids (phongkong shops whre possible).

Add policies and savings and one doesn't come out with much.

I really feel for those living in absolute poverty.
 
Jase,

Luckily I ride a bike so the fuel is not hurting that much... It is now R100 to fill up instead of R70... I can handle that...

School fees are paid up for this year but unless things turn around next year is going to be hard, I know how you feel with clothing though. 2 little girls who demand to look pretty ;)

I sometimes feel like I am living in absolute poverty myself...
 
It's a struggle - esp with growing kids in the house. Fortunately I paid off my house before anything else but that still leaves the missus car and the odd credit card.

Also just learned that we're due for a rate increase in my area of about 550% which isn't too pleasing. :o
 
GavinMannion said:
air as has already been stated all the facts are put on the table at these meetings, if you wanted to you can read the full scripts. Just drop it.
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Hey Gav

facts on the table? Do you believe that inflation is running between 6 and 7%? Yes, I realise that is what we get told, but far more learned people than you or I have a very different opinion. I'll try and find the articles for you.

As for the 'just drop it' - are you a self appointed mod who gauges who and what content can be posted? Err, last time I looked GrandMaster, you are not.
 
rate increase in my area of about 550%
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Ouch :)

There are definitely too many banks/institutions who seemed to dish out credit cards as though they were business cards. The poor people who accepted more cards than they could handle financially are the people who are going to suffer the most.
 
I heard of alot of people who had a new car and a more expensive house at the beginning of last year. Then they just made it every year.

So even a little increase of 50 basis points is hurting them. :(

IMHO we should not be too worried. Prime won't see anything above 14%. That leaves room for another 1% hike over the next 3 meetings this year.
 
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