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Reserve Bank is not to blame for the state of the economy

20 May 2022
Publisher: Business Day

Above-inflation wage drives are likely to cause a rise in unemployment at worst, and slow job growth at best.

The SA Reserve Bank bears a disproportionate share of the blame for SA’s meagre sub-2% potential economic growth rate, the 35.3% crisis-high unemployment rate, and high levels of poverty and inequality.

This blame leads to zealous but incoherent calls for the central bank to be involved in things ranging from funding small, medium-sized and micro-enterprises (SMMEs) to providing low-interest loans for housing and even vaguely framed protection of citizens’ socioeconomic wellbeing…

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