Reserve Bank says it’s willing to cut interest rates
This comes as the bank is under even more political scrutiny and in a sensitive spot over key personnel
The SA Reserve Bank has signalled its willingness to drop interest rates, saying inflation outcomes over the past 10 months mean policy has not been as accommodative as it could have been.
In response to questions last week, the central bank said that using real interest rates – which strip out the impact of inflation – as a measure, on balance, monetary policy since 2008 had been accommodative of the weak economy “although the degree of accommodation has declined in the past 10 months in particular”.
Central banks usually describe policy as “accommodative” in referring to conditions in which they believe money to be cheap enough to make it easier for businesses to borrow, while tighter conditions imply the opposite...