LETTER: Rate hike not ‘anti-poor’

Raising cost of loans is measure to decrease the high inflation rate

”, January 26). On the contrary, it is a calculated measure to decrease the high inflation rate in the medium and long-term.

Raising the cost of borrowing money discourages people from taking out loans and thereby leaves less disposable income for them to use. This ultimately curbs the demand for goods and services and averts demand-pull inflation, which is typically caused by a rise in disposable income. There is nothing exceptional about what has been said here — these are the basics of economics. That so many people are unaware of them should be a cause for concern.

Perhaps we should consider making economics a compulsory subject in the school curriculum so such confusion can be avoided.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

BDliveSA /  🏆 12. in ZA

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

READER LETTER | Zuma trying to stall his corruption trial yet againThe charges levelled against President Cyril Ramaphosa were meant to delay the start of Jacob Zuma’s fraud and corruption trial.
Read more »

PODCAST | SARB lifts lending rate, but could it be the last for a while?Mudiwa Gavaza speaks to Annabel Bishop, chief economist at Investec
Read more »

READER LETTER | Eskom's problem is maintenance, not supplyEskom should focus on energy supply, maintenance and procurement, while the government provides policy on sources of energy.
Read more »

WATCH: SAFTU opposes interest rate hike [Video]Need your news quickly? Watch daily News in a minute videos from The South African YouTube page for all that you really need to know!
Read more »

WATCH: Is the Sarb’s rate hiking spree nearing an end?Business Day TV spoke to FNB senior economist Koketso Mano
Read more »

LETTER: Does the ANC care how Eskom’s troubles hurt the poor?Does the ANC care how Eskom’s troubles hurt the poor?
Read more »