The yield on long-term government bonds rose from just below 13 per cent at the beginning of May to a peak of over 21 per cent last week. Other interest rates followed the upward trend and established the extremely high levels we now have for the Reserve Bank’s rate for repurchase transactions, the prime overdraft rate, and the mortgage lending rate of banking institutions.
In this process, triggered by a decline of investors confidence in the emerging markets of the world, little concern was shown for the depressed conditions in the South African economy. No consideration was given to the needs, desires or expectations of the people of South Africa.