Read the following extract and answer question? A dull Reserve Bank meeting may be a good thing. As markets get jittery about inflation and interest rates, the Bank is a sea of calm calculation …Governor Lesetja Kganyago will see having been able to keep interest rates at 50-year lows as a vindication of past policy. Two months ago, some of SA’s peers in emerging markets, namely Turkey, Russia and Brazil, already tightened policy. “If you want lower interest rates you have got to have lower inflation,” Kganyago told Business Day a month ago, comments that made it clear the Bank is in no rush to raise interest rates, even though its projection model suggested that policy tightening would start in the second quarter. The view being expressed by Governor Lesetja Kganyago above are that of… a) The monetarist approach to inflation b) Cost pull inflation c) Demand push inflation d) The conflict approach
Read the following extract and answer question?
A dull Reserve Bank meeting may be a good thing. As markets get jittery about inflation and interest rates, the Bank is a sea of calm calculation
…Governor Lesetja Kganyago will see having been able to keep interest rates at 50-year lows as a vindication of past policy. Two months ago, some of SA’s peers in emerging markets, namely Turkey, Russia and Brazil,
already tightened policy. “If you want lower interest rates you have got to have lower inflation,” Kganyago told Business Day a month ago,
comments that made it clear the Bank is in no rush to raise interest rates, even though its projection model suggested that policy tightening would start in the second quarter.
The view being expressed by Governor Lesetja Kganyago above are that of…
a) The monetarist approach to inflation
b) Cost pull inflation
c) Demand push inflation
d) The conflict approach
In order to keep the interest rates low, which of the following instruments will it use?
a) Quantitative easing
b) Open-market policy
c) Increase government spending
d) Raise taxes
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