'Restrictive monetary policy bereft of reason' says top economist

Dr Roelof Botha has long been calling for a more aggressive interest rate policy from the Reserve Bank.

The Money Show asked him if he is anticipating it to come to fruition tomorrow, Thursday 19 March.

Yes I am, but unfortunately for the wrong reasons. I suspect that the monetary policy committee will realise that the economy needs stimulus now more than ever before because this is a historic event - the airline industry has not seen anything like this since the Wright-brothers started their trips. There is a need for a structural downward adjustment in the Repo rate because it is way out of kilter with our major trading partners. This economy is suffering from a demand deficiency, big time.

Roelof Botha, independent economist

Twenty per cent of our factories are empty. There is not enough demand. if you lower interest rates sufficiently and they stay there for a whole, it will obviously incentivise demand in this economy.

Roelof Botha, independent economist
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LIsten to the full interview below.

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