1) Headline inflation in South Africa, as measured by the cost-of-living index (CPI) is now running at 6.5%, well above

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1 Headline Inflation In South Africa As Measured By The Cost Of Living Index Cpi Is Now Running At 6 5 Well Above 1 (22.23 KiB) Viewed 15 times

Write two 1000-word essays referring to all the aspects mentioned in the questions below.
The essays should include an Introduction, Body and Conclusio
1) Headline inflation in South Africa, as measured by the cost-of-living index (CPI) is now running at 6.5%, well above the South African Reserve Bank (SARB) inflation target range of 3% -6%. The SARB has therefore now embarked on an interest rate raising cycle in order to curb inflation. What criteria should the SARB be using to decide at what level to pitch interest rates in South African economic circumstances? What are the implications for business of dearer money and higher borrowing costs in the period ahead? (50)