Rob on Nostr: Am I losing my mind, or would lowering the inflation target not require _raising_ ...

Am I losing my mind, or would lowering the inflation target not require _raising_ interest rates? If you drop rates at the same time as the target, you don't achieve it because inflation spikes, since more loans (at higher values) become more likely, raising money supply and increasing overall exposure to defaults.

If you want lower inflation, ie "harder money", it should be harder to aquire, which means _increasing_ interest rates. No?

https://businesstech.co.za/news/property/808296/what-a-big-change-for-the-reserve-bank-could-mean-for-r10000-per-month-home-loans-in-south-africa/

#asknostr #SouthAfrica