Dear Mr Mboweni, Concerning further interest rate increases. Don't you think that the recent increases of interest rate have done their job of cooling down the economy as was intended? This obviously has had an effect of increasing the inflation due to the lower volume of turnover, inturn causing higher prices to compensate for profit. By increasing the interest rates further will only help fuel inflation further as profits need to be maintained by the lower turnover, which is caused by the higher cost of money from the higher interest rates. Higher interest rates in a slowing economy will only choke the economy even further and cause higher inflation to compensate for profits which an economy needs in a competitive environment. Businesses need to push up prices when volumes drop in a slowing economy so that profits are maintained. World markets are starting to rise from the credit crunch so it would be detrimental to go overboard by increasing the South African interest rates higher, believing that they will lower inflation now. To the contrary they will have an opposite effect. Interest rates should only be raised slowly when the economy is doing well and decreased slowly as the economy is not doing so well. It is no good to increase interest rates in a slowing economy as it is no good flogging a wounded horse with more floggings so that it will be more productive or efficient. In short don't overkill. I hope you will understand. Yours sincerely, G.V.Vitali I forgot to mention in the e-mail above that the inflation target must be between 1.3% and 1.4% and not 3 to 6 percent as at present. It becomes much more effective to control the economy with a low interest rate than with a high interest rate. The slightest movement in interest rates when they are low has a much greater effect than when they are high. I must correct with great importance the inflation target in the comment above. The difference of the percentages will become apparent in the effectiveness of the target. The inflation target should be between 1.39% and 1.4%, the bulls eye should be 1.395%. If you can keep the target for one jubilee period (50 years) you will have done you job correctly.