Die ekonomie minuut

The Reserve Bank increased the repo rate by 25 basis points yesterday. In other words, 0.25 of a percentage point. This means that you will have a slightly larger instalment on your debt. There will be comments today saying that the Reserve Bank has an unhealthy obsession with the inflation target band of 3 to 6%, that inflation is falling, that economic growth has already been knocked flat and now they are increasing the repo rate again. This touches on the debate about the mandate of the Reserve Bank - shouldn't they also be thinking about economic growth and employment? I think Governor Kganyago has answered the question time and again, namely that the economy cannot sustainably grow and create jobs if the inflation rate is high or unstable. What I don't see is what the critics propose as an alternative.

* The Economics Minute podcast  is sponsored by the the NWU Business School.

Die Reserwebank het gister die repokoers met 25 basispunte verhoog. Met ander woorde, 0,25 van ‘n persentasiepunt. Dit beteken dat jy ʼn bietjie groter paaiement gaan hê op jou skuld. Daar gaan vandag kommentaar wees wat sê dat die Reserwebank ʼn ongesonde obsessie het met die mikpunt van ʼn inflasiekoers tussen 3 en 6%, dat inflasie besig is om te daal, dat ekonomiese groei klaar plat geslaan is en nou verhoog hulle alweer die repokoers. Dit raak aan die debat oor die mandaat van die Reserwebank – moet hulle nie ook dink oor ekonomiese groei en indiensname nie? Ek dink die Goewerneur Kganyago het die vraag keer op keer beantwoord, naamlik dat die ekonomie nie volhoubaar kan groei en werk skep as die inflasiekoers hoog of onstabiel is nie. Wat ek nie raaksien nie is wat die kritici as alternatief voorstel.

* Die NWU Sakeskool is die hoofborg van Die Ekonomie Minuut.

Economists agree that the Reserve Bank's Monetary Policy Committee will raise the repo rate again later this afternoon. However, there is reasonable uncertainty as to whether it will be a 25 basis point or 50 basis point increase. Here are the reasons why.

* The Economics Minute is supported by the NWU Business School.

Ekonome is dit eens dat die Reserwebank se Monetêre beleidskomitee later vanmiddag die repokoers weer gaan verhoog. Daar is egter redelike onsekerheid oor of dit ʼn 25 basispunte of 50 basispunte verhoging gaan wees. Hier is die redes hoekom.

* Die NWU Sakeskool ondersteun Die Ekonomie Minuut.

With the prospect of at least two more years of load shedding, the pressure it is putting on small businesses is in the news. The National Chamber of Small Business has called for generators and diesel to be subsidised. Is this the best way?

Met die vooruitsig van ten minste nog twee jaar van beurtkrag is die druk wat dit op kleinsake-ondernemings plaas in die nuus. Die Nasionale Kleinsake Kamer het ʼn beroep gedoen dat kragopwekkers en diesel gesubsidieer moet word. Is dit die beste manier?

Ons weet dat beurtkrag die hele ekonomie swaar tref, maar die laaste paar dae was die fokus op die landbou-sektor. Besproeiingsboere in die Noord-Kaap het ʼn beroep op die President gedoen om ʼn noodtoestand te verklaar en hoenderboere het gevra vir ʼn BTW nulkoers op hoenderprodukte. Die van ons wat nie in die bedryf is nie wonder dalk hoekom sulke stappe nodig geag word.

We know that load-shedding affects the entire economy, but the focus in the last few days has been on the agricultural sector. Irrigation farmers in the Northern Cape appealed to the President to declare a state of emergency and chicken farmers asked for a VAT zero rate on poultry products. Those of us who are not in the industry may wonder why such steps are deemed necessary.

Almal praat oor beurtkrag en met gister se nuus dat dit ten minste nog twee jaar gaan duur, het ek gedink om ook iets daaroor te sê. In eenvoudige terme is die vraag na elektrisiteit groter as die aanbod en in Ekonomie-1 beteken dit die prys moet styg. As die mark werk sal die aanbod stadig toeneem en prys stabiliseer. Ons kan lank praat oor wat die oorsake van die toestand is, en wat die beste oplossings is, maar vandag wil ek gesels oor die deel waar die mark werk – residensiële sonpaneelstelsels.

Everyone is talking about loadshedding and after yesterday's news that it will last at least another two years, I thought I'd say something about it too. In simple terms, the demand for electricity is greater than the supply and in Economics-1 this means the price must increase. If the market is working, supply will slowly increase and price will stabilize. We can go on about what are the causes of the crisis, and what are the best solutions, but today I want to talk about the part where the market works - residential solar panel systems.