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

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*