/ 27 November 2009

SA appoints advisers to Marcus

South Africa has appointed two senior central bank officials as advisers to new Governor Gill Marcus with effect from December 1, the bank said on Friday.

The central bank said in a statement chief economist Monde Mnyande would be responsible for establishing an ”outreach programme for the bank to interact with stakeholders across the broad spectrum of South African society”.

Brian Kahn would be adviser responsible for economic developments.

Marcus assumed the position at the Reserve Bank on November 9, replacing Tito Mboweni.

Unions say the central bank under Mboweni failed to cut interest rates aggressively enough to help an economy that climbed out of recession in the third quarter of this year after three consecutive quarters of contraction as a global downturn took its toll.

The bank’s monetary policy committee has cut rates by 500 basis points since December, unwinding increases effected between June 2006 and June 2008 to tame inflation.

But it has left rates unchanged at its last three meetings — the last one chaired by Marcus for the first time — on signs of economic recovery and worries that high power tariff rises will feed price pressures. — Reuters