Part of this article - MPC increases repo rate to 5.5%:
It's a pretty deadly cocktail. And frankly increasing the interest rate isn't going to be enough to unravel it - not by a long shot.Marcus outlined the balancing act faced by the Reserve Bank, which included reacting to sharply depreciating currencies, capital outflows, slowing growth, rising inflation, a significant current account deficit and deteriorating consumer confidence. These factors combined, said Marcus, pose "policy challenges" and "very difficult trade-offs for many emerging markets".
Worst of all, that list is far from complete.
Add crippling strikes, electricity supply shortages that prevent expanding industry, bureaucracy that is killing SMME's, "service delivery protests" (which would be called riots in most other parts of the world)...
Did you like this article? Share it with your favourite social network.