Reserve Bank needs to take drastic action as inflation rises higher than expected: Economist - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Economist Dr Azar Jammine says the Reserve Bank needs to take drastic action as inflation rises higher than it wants it to be.

and unions are demanding huge wage increases for their members in light of the rising cost of living.

“Unfortunately, the Reserve Bank has been adamant that it needs to try and dampen inflation expectation and this has risen sharply as a result of higher food and fuel prices and what’s going on internationally. And more recently we’ve had rand weakness as well which will add to those inflationary pressures. And as a result, the general expectation is that the repo rate is going to be raised by another half a percentage point on Thursday and could rise further later this year,” says Jammine.

 

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