The decision by the SA Reserve Bank to increase the repo rate by 50 basis points might not curb inflation, according to the Durban Chamber of Commerce (DCC).
DCC chief executive Dumile Cele said: “It remains to be seen whether such measures by the SARB are enough to curtail inflation given all other factors outside of the central bank’s control.”
She said that the increase could in fact stifle economic growth given the fact that the country was dealing with a depreciated currency and facing electricity tariff hikes.
Cele said it would be the country’s consumers who would face the brunt of the repo rate hike.
She said the bigger issue that needed to be confronted was whether the country was entering a recession.
She said the focus for February would be on President Jacob Zuma’s State of the Nation Address in February and National Treasury’s budget that is to be delivered by Finance Minister Pravin Gordhan on February 24.
“The chamber calls for strong policy positions that put the focus squarely on GDP growth and also support commerce and industry.”
– African News Agency (ANA)
Repo rate may not be enough to curb inflation, says DCC
The decision by the SA Reserve Bank to increase the repo rate by 50 basis points might not curb inflation, according to the Durban Chamber of Commerce (DCC).
DCC chief executive Dumile Cele said: “It remains to be seen whether such measures by the SARB are enough to curtail inflation given all other factors outside of the central bank’s control.”
She said that the increase could in fact stifle economic growth given the fact that the country was dealing with a depreciated currency and facing electricity tariff hikes.
Cele said it would be the country’s consumers who would face the brunt of the repo rate hike.
She said the bigger issue that needed to be confronted was whether the country was entering a recession.
She said the focus for February would be on President Jacob Zuma’s State of the Nation Address in February and National Treasury’s budget that is to be delivered by Finance Minister Pravin Gordhan on February 24.
“The chamber calls for strong policy positions that put the focus squarely on GDP growth and also support commerce and industry.”
– African News Agency (ANA)
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