GDP shrinks further – SARB keeps Interest Rates

There is unfortunately very little good news to report. Although our inflation rate is at 2.9% it did not tempt the Monetary Policy Committee of the Reserve Bank to grant further relief for local debtors. Their Ivory Tower Approach of ignorance continues and they still have not reconnected with the base of the South African population. What is even worse is that they recognised in their last meeting that the inflation rate is below the agreed target-corridor of between 3% and 6% AND the economy is further contracting in 1Q2021. There is virtually no valid argument not to lower the Repo rate and thereby prompting the commercial lenders to lower their borrowing interest rate as well.

What started as a good job by Lesetja Kganyago, now reflects the pattern of the remaining leadership of the country. Lack of interest, unwillingness to work and total ignorance of the pressing needs under current circumstances. Long gone the days of happiness with SARB when motivated and committed governors like Chris Stals, Gill Markus or even Tito Mboweni had the reign.

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