South Africa’s interest rate dilemma amidst global trade winds
AS GLOBAL trade tensions escalate—particularly with the looming imposition of a 30% tariff on South African exports to the United States—the South African Reserve Bank (SARB) finds its monetary policy options constrained.
While inflation figures may appear benign, remaining within or below target levels, economic realities suggest that increasing interest rates in response to rising inflation could be both ineffective and damaging.
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