SARB recommends stable monetary policy

The South African Reserve Bank (SARB) said on Tuesday in its latest Monetary Policy Review that in light of the risks around the subprime crisis in global markets, it is important to maintain a stable and transparent monetary policy regime.

The SARB noted that authorities in some emerging markets have been advised to strengthen surveillance to ensure vulnerabilities to the crisis do not build to more systemic levels, although emerging markets have not been disrupted as severely as developed economies and even though banking systems in emerging markets are currently profitable and well capitalised.

In a recent speech, SARB Governor Tito Mboweni pointed out that an investigation done by the bank had shown that South African banks were sound.

“Sharp swings in financial market prices and volumes that change the financial conditions for the real economy can affect both the central forecast and, perhaps to a greater extent, the risks around the forecast,” stated the SARB.

“This, in turn, could lead to a change in policy stance and amounts to a middle way on the important question of moral hazard, ie no policy rate cuts simply to bail out distressed investors, but no undue risks with the economy to prove the point. These risks accentuate the importance of maintaining a stable and transparent monetary policy regime,” concluded the bank. — I-Net Bridge

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.


Western Cape Premier Alan Winde tests positive for coronavirus

Alan Winde admits he is in a vulnerable group when it comes to contracting the virus, considering he is 55 years old, and a diabetic

Eusebius McKaiser: A witness to Covid-19 stigma

Let us please not repeat the devastating Aids story where people died of shame rather than admit being infected by the virus

New August 31 deadline for the last learners to return...

In an amendment published in the Government Gazette on Tuesday, the basic education minister has made further changes to the school return dates for different grades

Eskom refers employees suspected of contracts graft for criminal investigations

The struggling power utility has updated Parliament on investigations into contracts where more than R4-billion was lost in overpayments

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday