Changes in interest rates impact richest 20% more than the poor – Kganyago

Lesetja Kganyago
Elske Photography

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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: