Bank faces tough choice

NoT long ago, economists expected the sA Reserve bank to raise interest rates just 25 basis points and provide signals it was nearing the end of a punishing tightening cycle.It would have meant the bank is closer to victory in its 18-month battle against inflation and gave comfort to consumers chocking on an uncomfortably high household debt to-income ratio. but the rand crashed to record lows, primarily pummelled by two factors.First was the escalation in load-shedding in recent weeks that included gloomy expectations that businesses and consumers should brace themselves for worstyet power cuts this winter. That is stage 8 load-shedding, or up to 16 hours of power cuts daily. Whether you are an ultrarich individual living in some of the country’s wealthiest suburbs or a blue-chip company with cash to burn, 16 hours is a long time.