Pretoria, South Africa
Yesterday, Lesetja Kganyago, Governor of the South African Reserve Bank (SARB) announced the cut in interest rates by another 25 basis points.
To date, the SARB has had to cut interest rates by 300 basis points due to the economic impact of COVID-19.
Although the measures taken by the SARB are of a relief to many creditors, some of the country’s economists wanted the SARB to implement more measures.
“It’s a very disappointing move by the SARB for the interest rates not to be adjusted in accordance with the inflation rate it is not right.
The move is not going to do much to revive our economy. Interest rates should actually come lower to the level of our inflation rate or drop it to zero. It’s just a matter of austerity by the Reserve Bank.
I also believe it’s now time for the Reserve Bank to introduce quantitative easing, there is no resurgent inflation associated with that,” said economist, Duma Gqubule.
Another economist, Isaac Matshego, also said the SARB’s stance on interest rates was not going to assist much of the economic crisis in the country.
“The move by Governor Kganyago is not going to last for a long period. People are losing jobs and unemployment is surging this should be the main point of focus,” said Matshego.