The Monetary Policy Committee has a difficult job. They have to drive the economy forward, but they have to do it while looking in the rearview mirror. That look back is at inflation which rose in August, September and October from 4.7% to 5.9%. Fortunately, they looked beyond these numbers at the factors that will reduce inflation next year and decided to leave the repo rate unchanged.

This episode is supported by the NWU Business School.

Errors and omissions are my own.