South Africans are in deep trouble as the Reserve Bank is getting ready to increase the interest rates.
Speaking in Johannesburg recently, the central bank governor Lesetja Kganyago said Mzansi still has space to raise rates. “We have not reached the ‘end’ of our policy rate space,” said Kganyago.
“Inflation expectations, for the most part, are proving to be more responsive to current inflation outcomes than we would like, and less anchored around the midpoint of our target.”
The central bank through its monetary policy meeting raised interest rates in their last six sittings in a bid to curb and get inflation under control.
The governor and his team are trying to clean up the mess they created during lockdowns by flooding the system with cash.
“South Africa’s headline consumer inflation slowed to 7.5% in September from 7.6% in August, but it is still well above the Sarb’s 3-6% target range.”
What’s happing at the central bank, it’s a clear indication that they don’t know what they’re doing trying to solve problems with the old ways of doing things.
The sooner we get rid of these old structures like the central bank and replace it with the blockchain the better.
