29 November 2006
Rate Hikes Ain't Stopping
Everyone was hoping there wouldn't be a rate hike before Christmas but with rampant consumer spending it's becoming clear that a hike before the 25th of December is a dead certainty and after that Reserve Bank Governor Mboweni is going to pause right? Right!?! Well maybe not. It seems economists are now expecting rake hikes into 2007 as well. So why doesn't Tito stop pussy footing around with 50bp hikes and just raise it 100bp already?
Subscribe to:
Post Comments (Atom)
1 comment:
In the Argus yesterday - Stats SA say food inflation is 8.5% - the highest in 4 years. Including beef and lamb up 25% and maize meal up 36%. If inflation control is Mbowenii's objective then it doesn't seem like his slowly slowly approach to interest rates is working ...
Post a Comment