The Reserve Bank is not pulling its punches

[BusinessTech]

The Reserve Bank is not pulling its punches

The South African Reserve Bank is holding strong on its mandate to curb inflation.

 

[Pegasus]

 

[Magnum]

It is starting difficult to afford things. Both prices and interest is climbing at one hellava speed.

 

[noxibox]

Seems like they are pulling their punches given the amount by which they raised the rate. Not that it matters since interest rates don't reduce inflation.

 

[Speedster]

Seems like they are pulling their punches given the amount by which they raised the rate. Not that it matters since interest rates don't reduce inflation.

Lol

 

[Paul_S]

Lol

@noxibox has a point though. Currently our inflation is being driven by food and energy prices and both commodities are necessary for survival.

It doesn't matter if you make the prime interest rate 30%, people still need to eat and get to work.
It doesn't matter if fuel ends up costing R50/litre - I'll still use two tanks of fuel to get to work. If the price of bread tripples I'll still buy the same number of loaves to eat in a month.
That's what I don't get. If people have already cut out all the luxury spending then it doesn't matter what you do with the interest rates unless you expect people to stop eating entirely.

 

[am-user]

@noxibox has a point though. Currently our inflation is being driven by food and energy prices and both commodities are necessary for survival.

It doesn't matter if you make the prime interest rate 30%, people still need to eat and get to work.
It doesn't matter if fuel ends up costing R50/litre - I'll still use two tanks of fuel to get to work. If the price of bread triples I'll still buy the same number of loaves to eat in a month.
That's what I don't get. If people have already cut out all the luxury spending then it doesn't matter what you do with the interest rates unless you expect people to stop eating entirely.

Urban subsistance farming: Chicken coop and vegetable garden