Changes in interest rates impact richest 20% more than the poor – Kganyago
South African governor says microloans are shaped by factors other than monetary policy
Changes in monetary policy have a much “stronger” impact on the wealthiest 20% of households, according to the governor of the South African Reserve Bank (Sarb).
Speaking at a lecture earlier this month, Lesetja Kganyago acknowledged that lower interest rates typically worsen inequality. But he dismissed the view that changes in interest rates tend to impact the poorest members of the population more than others.
“If we reduce the repo rate by 25 or 50 basis points, people with mortgages and
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