Sarb urged to cut rates as stimulus

EXPERT: UNEMPLOYMENT SHOULD BE PRIORITY OF GNU >>> Economy has to do better to improve job creation - analyst.

- Eric Mthobeli Naki

Police confiscate machinery used to make alcohol, illicit alcohol in 100ml containers, including branded alcohol labels, and money believed to be the proceeds of crime in Soweto on Saturday.

(Nigel Sibanda)

With a positive forecast for the South African economy this year predicted in different quarters, the South African Reserve Bank (Sarb) is being urged to put more money in consumers' pockets to stimulate economic growth.

With unemployment rising and closing in on 50% among the youth, job creation should be the priority of the government of national unity in every department and every policy, political economy analyst Daniel Silke said.

He lambasted South Africa's "very high interest rates" but said the series of repo rate cuts last year gave hope that the economy will perform well this year.

"We have very high interest rates in South Africa, to keep inflation at bay, which has been relatively successful, actually, from the Sarb perspective," Silke said.