Brian Kantor: SA monetary (inflation) policy – bad theory put into practice

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Last week the South African Reserve Bank decided to hike interest rates by 25 basis points. It was a decision that left a bad taste in well-known economist Brian Kantor’s mouth.

In the article below Kantor questions the bank’s theory of using inflation targeting as the measure in reaching its decision, saying the most important influence on inflation, the Rand, is beyond the influence of short term rates. An insightful read. – Stuart Lowman

By Brian Kantor*

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
USD/ZAR
14.26
(+0.3)
GBP/ZAR
19.64
(+0.6)
EUR/ZAR
17.08
(+0.7)
AUD/ZAR
11.05
(+0.6)
JPY/ZAR
0.13
(+0.6)
Gold
1,771.25
(+0.4)
Silver
26.06
(+0.8)
Platinum
1,199.50
(+0.2)
Brent Crude
66.94
(+0.5)
Palladium
2,747.00
(+0.1)
All Share
68,457
(+0.9)
Top 40
62,675
(+1.0)
Financial 15
12,380
(+0.3)
Industrial 25
89,157
(+0.6)
Resource 10
70,018
(+1.7)
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1273 votes
No, I did not.
51% - 3158 votes
My landlord refused
28% - 1704 votes
Vote