Brian Kantor knocking on Sarb’s door – worry about economy, not inflation

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

Investec’s Brian Kantor is once again knocking on the South African Reserve Bank’s door, pleading with them to focus on the things they have control over. This as the country prepares itself for another Monetary Policy Committee meeting, with economists divided over an expected hike or for rates to remain steady. The repo rate has been increased by 1 percentage point since July 2015 to 6.75%.

Kantor’s concern, and that of the Bank, is stagflation – a slow growth, high inflation environment. And while inflation is usually fought with higher interest rates, the problem is it's not demand driven but influenced by outside factors beyond their control.

Kantor says South Africa’s monetary policy should instead focus on limiting the damage higher interest rates have caused to the economy. And come to the realisation that they will not influence the outlook for inflation. Some great analysis. – Stuart Lowman

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism. You can cancel any time.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
16.14
+0.9%
Rand - Pound
21.52
+0.2%
Rand - Euro
18.21
+0.4%
Rand - Aus dollar
11.52
+0.2%
Rand - Yen
0.14
-0.4%
Gold
1,795.62
+0.1%
Silver
23.40
+1.1%
Palladium
1,792.50
+2.3%
Platinum
956.00
+0.1%
Brent Crude
72.72
-11.6%
Top 40
62,411
0.0%
All Share
68,615
0.0%
Resource 10
64,074
0.0%
Industrial 25
92,909
0.0%
Financial 15
12,995
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot