In its first meeting for 2024, the Reserve Bank’s Monetary Policy Committee (MPC) voted to keep interest rates at the highest levels since 2009 – and some economists are calling for a committee reshuffle, saying that rates could be much lower than they are today., with the prime lending rate at 11.75%. The bank’s decision was unanimous and falls in line with market consensus.
While the SARB acknowledged the easing inflationary environment, the bank remained hawkish in tone, warning that the risks to the inflation outlook remain on the upside – particularly around food inflation, and the power, logistics and infrastructure crises in South Africa. However, research economist Dr Roelof Botha said there are some serious flaws in the SARB’s Monetary Policy, and changes must be made., Botha said that he has long called for changes to the composition of the MPC – arguing the committee must include people with an intimate knowledge of how much financial pain is suffered when interest rates are unnecessarily hig