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The interest rate announcement by the newly appointed Reserve Bank Governor, Gill Marcus is a welcome sign that the Reserve Bank has retained its independence amidst populist calls for drastic changes to monetary policy. The decision to keep the interest rate unchanged is a clear rebuff of radical calls from the likes of Cosatu who would want it dropped to 5%, which would almost certainly trigger spiraling rates of inflation. Inflationary pressures such as higher wages, the possible Eskom tariff hike and base effects from oil price increases require a tough stance to ensure price stability. But the general trend is definitely towards reaching the inflation target; erratic populism will only frustrate the broader goals of the Reserve Bank. Although the decision might understandably come as difficult news to many mortgage holders, and indeed borrowers across the economic spectrum, we must face up to the fact that the recession has placed strain on South Africa's economy, and that maintaining a solid currency, and keeping inflation in check, are crucial for reestablishing our economy's health and viability as a destination for foreign direct investment.