SA needs an interest rate reprieve

In this edition of Business Day Spotlight, the focus is on SA’s monetary policy as the SA Reserve Bank (SARB) is set to make an interest rate decision on Thursday 18 July 2019.

Our host Mudiwa Gavaza is joined on the line by Tumisho Grater, Economic Strategist at Novare.

In this discussion, Gavaza and Grater explore news around the SARB. With Governor Lesetja Kganyago having been reappointed to lead the central for another term, what does that mean for SA’s macroeconomic stability? Could the President have chosen anyone else to head up the central bank?

Grater explains the role and responsibilities of the governor and outlines the current state of monetary policy in SA.

Regarding the interest rate decision on Thursday, Grater says the Monetary Policy Committee is unlikely to hike rates this time around given the current performance of the economy coupled with the pressure felt by consumers.
She also highlights other factors to consider such as the US’s interest rate policy, international oil prices, together with the impact on ordinary South Africans, businesses and the Rand.
Listen in to hear thoughts around these and other questions.