Lumkile Mondi
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/ 3 July 2006

For an interest-rate cut

Now that the banks have increased their prime lending rate from 10,5% to 11%, it is important to take stock of the Reserve Bank governor’s suggestion that there may be a need for further interest-rate hikes. What are the costs and benefits of maintaining the country’s real high interest-rate regime — and what are the implications for economic growth?