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UCT GSB teaching case study wins top international award
UCT GSB teaching case study wins top international award

GIBS Executive MBA ranked in top 60 of QS ranking
GIBS Executive MBA ranked in top 60 of QS ranking

What USB is doing to ensure teaching and learning continues
What USB is doing to ensure teaching and learning continues

Values-based leadership in the age of COVID-19
Values-based leadership in the age of COVID-19

Workplace bullying and sick leave during COVID-19
Workplace bullying and sick leave during COVID-19

Maurice Radebe appointed as head of Wits Business School
Maurice Radebe appointed as head of Wits Business School

If there was ever a time for reflection it is now
If there was ever a time for reflection it is now

Just a little kindness
Just a little kindness

UCT GSB Executive MBA ranked in global top 50 ranking
UCT GSB Executive MBA ranked in global top 50 ranking

IMF loan goes wider than just helping to balance the budget
IMF loan goes wider than just helping to balance the budget

What companies should do to manage employee well-being
What companies should do to manage employee well-being

How great ideas are born
How great ideas are born

Will COVID-19 change the classroom?
Will COVID-19 change the classroom?

SA needs leaders with a desire to help others
SA needs leaders with a desire to help others

SA higher education doesn’t work
SA higher education doesn’t work

GIBS appoints Andile Sangqu as executive in residence
GIBS appoints Andile Sangqu as executive in residence

When the ground shifts, it pays to be agile
When the ground shifts, it pays to be agile

Should entrepreneurs wait out the pandemic or forge ahead?
Should entrepreneurs wait out the pandemic or forge ahead?

Right-sizing: the dilemma for business under pressure
Right-sizing: the dilemma for business under pressure

What do we learn from pressure?
What do we learn from pressure?

How to spot when an employee is secretly struggling
How to spot when an employee is secretly struggling

Wake up to the new workplace revolution
Wake up to the new workplace revolution

Moleli’s taking it to the next level
Moleli’s taking it to the next level

How startups can drive growth in a disrupted world
How startups can drive growth in a disrupted world

How do we change norms as we rebuild post Covid-19?
How do we change norms as we rebuild post Covid-19?

Leadership’s toughest test
Leadership’s toughest test

SA is paying dearly for yesterday’s mistakes
SA is paying dearly for yesterday’s mistakes

MBA applications break all records for Henley
MBA applications break all records for Henley

The regulatory environment can stop innovation in Africa
The regulatory environment can stop innovation in Africa

Embracing the unknown can make you a better leader
Embracing the unknown can make you a better leader

Planning for the post-COVID-19 workforce: Four scenarios
Planning for the post-COVID-19 workforce: Four scenarios

3 ways to be happier... even in the middle of a pandemic
3 ways to be happier... even in the middle of a pandemic

GIBS/TWIMS MBA Manufacturing Ambassador Scholarship
GIBS/TWIMS MBA Manufacturing Ambassador Scholarship

New MBA timetable starts in 2016
New MBA timetable starts in 2016

EVENTS
THE International MBA - InfoBytes
THE International MBA - InfoBytes
27 August 2020,
ALL CITIES IN SOUTH AFRICA



03 DECEMBER 2019
MPC decision is disappointing and unduly cautious

by Raymond Parsons: Professor at the NWU School of Business & Governance and a former special policy adviser to Busa.
It is disappointing that the MPC majority view is unable to contemplate reducing the repo rate, although the space now clearly exists to act positively. The fact that the MPC was divided by a 3-2 vote demonstrates that a strong view does now exist within the SARB for a more flexible approach. Headline inflation subsided to 3.7% in October. And the MPC itself is now also only expecting a growth rate of 0.5% in 2019, with its growth forecasts for 2020 and 2021 also cut further. With the emergence of a much better inflation outlook, MPC majority view is therefore unduly cautious in not wanting to ease borrowing costs in the economy.

And regarding future risks, despite past 'shocks' which sapped the rand, recent evidence has shown that inflation has nevertheless still declined, indicating how weak the cost transmission mechanism has become in changed economic circumstances. There is also a danger that the credibility of the SARB's anti-inflation mandate may be jeopardised if it is continually perceived not be responding positively to tangible improvements in the inflation outlook. The burden of proof for a central bank cannot be absolute certainty.

With inflation now falling well within the official target range, this visible success should therefore be reflected in lower borrowing costs in the economy. Monetary policy can and should now play a useful, if modest, role in helping to strengthen business and consumer confidence at a critical stage in SA's business cycle. It nonetheless remains true that the main burden of promoting job-rich growth in the economy does not ultimately lie with monetary policy, but instead with expediting and implementing the urgent economic reforms to which SA is committed.
Source:

NWU Business School
At the NWU Business School, we strive to change the way our students think about business. We want our students to become managers/leaders in their own right. Visit our InfoCentre or website.

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