Wednesday, 9 July 2008

...basis point

What I asked myself is how is a hiking interest rate helping the economy or the people. People are still waiting for RDP houses Tito is kicking out those who already have house to go and join the queue. When oil goes up automatically inflation will do the same and “raising interest rates won’t bring the price of petrol down “ said one economist and I believe the price of food is not going to relent either. The stats suggest that food make 40% of inflation. Why should the majority be punished because those who can afford are reckless? Target them and punish them not everyone. Maybe targeting inflation is not meant for a developing country like ours. I think targeting poverty would be more appropriate rather than monitoring what the rich are doing and ignoring the poor who become victims of the governor’s venom in the end. The poor are caught in the crossfire, when Tito raises interest rates business colludes to fix prices and make more profit. They go out to buy more and the poor would be punished again. Whose fault is it that Eskom, Gas, paraffin, Crude oil and food prices are going up?

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