The Times Editorial: While we bemoan the plethora of bad news in our political environment, the inflow of offshore cash into the local bond market, and to a lesser extent the JSE, is a huge vote of confidence in South Africa's economic potential. Investors in emerging markets are used to labour turmoil and leadership squabbles; it goes with the territory.

But South Africa's business people are fighting heavy headwinds. Our miners, manufacturers and retailers are battling. So too is our government, which is fast running out of money to pay for things like above-inflation wage demands.

Something has to break. Already asset managers are warning that the flow of "hot money" coming into South Africa will reverse at the slightest hint that returns are drying up.

This is why it is imperative that, later today, the Reserve Bank cuts the repo rate from 6.5% to 5.5%. By doing so, governor Gill Marcus will send a reassuring signal to the world that SA is serious about stimulating growth.

Right now, projected gross domestic product figures are not promising. Profits are drying up. Companies are laying off workers. The government will be forced to fire civil servants in the wake of the three-week-long strike - if only to meet demands by organised labour for budget-busting wage hikes. It is only through increased GDP that jobs can be created.

In the current high interest rate environment, which has the economy in a stranglehold, the going is tough.

Consumers will welcome a rate cut. Ordinary people are doing their utmost to reduce their debt. We're not in the mood to spend. Beyond replacing worn-out vehicles, and splurging on small luxuries like shoes and lipstick, we're loathe to borrow more money to buy durable goods like fridges and lounge suites.

The economy is suffering. It needs a dose of the good stuff. And the medicine we need lies in the hands of governor Marcus and her team.