Bruce Whitfield: Dear Governor, the economy could really do with the equivalent of a Red Bull shot

Opinion 

Bruce Whitfield is a multi-platform award winning financial journalist and broadcaster. He is a sought after public speaker on the political economy.

Dear Governor

This one-way communication is becoming pretty regular. I have no idea if you are getting these notes.

If you are, send a signal and cut rates please. We could all do with the lift.

Look, the finance minister’s probably going to take it all back in higher taxes anyway, so cut us some slack.

Most of us could do with a bit of a break – and the economy could really do with the equivalent of a Red Bull shot.

The Americans cut rates last night and more and more countries have negative interest rates. Ours are too high considering that inflation is well contained and growth is going to scrape through with 0.5%.

Moody’s is worried about growth and jobs, and while I know it’s not your task to fix big problems in the economy, it would buy us some time while we fight about how best to create a sustainable future.

I realise you guys are a conservative bunch over there at the Reserve Bank.

You will warn about the risk of a ratings downgrade, you will talk to South Africa’s vulnerability as an oil importer following last weekends drone attacks in Saudi Arabia which have raised the risk of price increases at the petrol pump, you are worried about the spike in food prices and the fact that trade wars and the risk of a hard Brexit threaten to disrupt the global economy and will have a negative impact on us.

Cut the repo rate Governor! There will always be risks. That’s the nature of our wild existence. South Africa needs more than just the joy of the Ndlovu Youth Choir’s extraordinary performance at America’s got Talent to lift us out of our funk.

Cut rates Governor. It’s the right thing to do. 

Bruce Whitfield is a multi-platform award-winning financial journalist and broadcaster.

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