Was raising interest rates the right decision? He says "yes", she says "no"...

The South African Reserve Bank (Sarb) announced on Thursday that it’ll hike interest rates by 25 basis points.

The repo rate, the interest charged by Sarb to banks, will rise to six percent. The prime lending rate, the interest charged by banks to customers, will jump to 9.5%.

The Money Show’s Bruce Whitfield interviewed Dr Adrian Saville, Chief Investment Strategist for Citadel.

Whitfield also spoke to Annabel Bishop, Chief Economist at Investec, who on Wednesday warned against an interest rate hike.

Scroll down to listen to the audio.

This is a good decision by the Sarb. Their primary mandate is to protect the value of our currency.

Dr Adrian Saville

Investment spending is blissfully ignorant of interest rates. Using rates to try and spur growth is not the way to go. We have to look much more broadly at things that choke economic development.

Dr Adrian Saville

This is going to moderate already depressed confidence in the economy.

Annabel Bishop

Inflation is not demand led.

Annabel Bishop

This article first appeared on 702 : Was raising interest rates the right decision? He says "yes", she says "no"...


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