The Reserve Bank had no choice but to raise interest rates, despite the weak economy and the unemployment rate. The alternative would make an already awful situation intolerable.
The South African Reserve Bank (Sarb) on Wednesday increased the repo rate by 25 basis points to 4%, taking the prime lending rate to 7.5%, in a move that was widely anticipated by most economists and market watchers.
South African consumer inflation has picked up pace, quickening slightly to 5% in September from 4.9% in August. This was mainly fuelled by food and petrol prices, which are a concern. But underlying price pressures remain muted in South Africa against the backdrop of mounting inflation jitters.
One day we’ll look back on this time and wonder how we could have survived so many unprecedented black swan events. We might even see how these were the economic transitions we needed to make from a world that no longer exists. The thing to remember is that black swan events can be positive,.
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