Fin24

New Basel rules to impact SA policy

2012-06-01 07:53

Johannesburg - New global liquidity requirements do not suggest a need to change South Africa's monetary policy implementation framework but will have an impact on monetary policy and interest rates, Reserve Bank Deputy Governor Daniel Mminele said.

"The ... requirements may result in South African banks reducing their lending, and therefore the availability of credit to the real economy," Mminele said in a speech posted on the Bank's website on Thursday.

"This will most certainly have negative consequences for economic growth and employment creation, which will further reduce available savings."