It is still in utter disbelief of the ignorance of reality and the reckless broadcast of false facts that find us this weekend following the most recent decision by the South African Reserve bank (“SARB”).
On Thursday, just before the long Heritage Day Weekend, SARB’s Monetary Policy Committee (“MPC”) decided to keep the repo rate – again(!) – unchanged at 3.5% with the lending rate following unchanged suit at 7%.
It is a fact that the economy is at its knees not being able to stand up without significant stimulus.
It is a fact that the current inflation rate is with 4.1% on its lowest levels and at the bottom of the SARB-prescribed corridor of between 3% and 6%.
And it is a fact that any forecast made by all reputable organisations see the inflation rate at 4.2% for 2021 and 4.4 for 2022.
But Reserve Bank Governor Lesetja Kganyago feels it is time to continue the bad trade of the current leadership, to be defiant and to lie to the people like there is no tomorrow.
He had the audacity to state that the virus is only one of a series of current risks to the economic recovery and that other (!) risks include rising inflation, weaker commodity export prices, and the long-term impact from the pandemic and the July unrest. Does he even understand the difference between cause and effect? We would rather replace his catalogue of risks and condense it to one underlying, major risk factor: Kganyago, his MPC and the Virus, a tripod of destined devastation and in urgent need to be eradicated as economic recovery doubters and dinosaur fiscal politicians are the true roots of the limping economy.
He continues to present fabricated lies in form of a GDP that will grow 5.3% in 2021 (from where? How?) a weaker currency (never has the Rand been stronger, despite an inept leadership), higher domestic import tariffs (which are made by the Financial Administration, HIS backyard) and escalating wage demands (which is not new, an annual event and owed to the Unions being in bed with the ANC sharing one government body) as well as a risk to the inflation forecast (we just established the fact that this is not true!).
Continuing with an even bigger bag of … : “While more South Africans have re-entered the jobs market as economic activity resumed (NO, it did not and we are facing record unemployment figures), the loss of jobs suggests persistent adjustment and sustained weakness in some sectors. (wow, really?) Household spending remains healthy (to the contrary, all reports indicate a reduction in household spending, read a newspaper!), however, in line with better than expected salaries and wages (more than 50% of the salaries are still threatened by pandemic reductions), rising commodity prices (only because the Rand is stronger), and low-interest rates. (you mean the interest rates that you do NOT want to lower?)”. Scandalous!
Shame on his blatant disregard for the truth and shame for damaging the reputation of his office, formerly held by intellectual giants that still believed in honesty and hard work instead of depression, lies and paycheck-greed. Cashing in the ladder seems the only ability of the SARB governor that remains …
President “Terminator” Ramaphosa, please have mercy and axe this dangerous clown!