The increase in interest rates only punishes the working class who have to pay more to service home loans and other loans, and does little to curb inflation. Raising interest rates is the wrong solution to the inflation problem, according to many analysts.
According to research economist at GIBS Business School, Dr Roelof Botha, the Monetary Policy Committee has thus far followed a “ridiculous” trend of interest rate decisions based on what first-world countries are doing – far removed from the realities of South Africa.
I support Botha’s view that increasing interest rate has nothing to do with inflation, and there are clear flaws in the SARB’s Monetary Policy, which requires urgent amendments.
South African decision-makers must liberate themselves from their subjectivism of Western countries, and implement policies that will benefit South Africans. African countries are looted of their resources, wealth, and even labour. Global communities benefit more from Africa’s resources and wealth than most Africans from the continent’s assets and riches.
In order to address unemployment, poverty and income inequality, South Africa needs to address the amount of wealth that leaves or flows out of the country.
Empty and flowery speeches are no longer needed, but principled and constructive policies based on African issues need to be implemented.
The government should mobilise behind research and studies that make a significant difference in the lives of all South Africans.
* Mohamed Saeed, Pietermaritzburg.
** The views expressed here are not necessarily those of Independent Media.
Do you have something on your mind; or want to comment on the big stories of the day? We would love to hear from you. Please send your letters to arglet@inl.co.za.
All letters to be considered for publication, must contain full names, addresses and contact details (not for publication)