Share

Official: Sarb may add to its arsenal

Pretoria - Monetary policymakers may have to look at other tools other than interest rates in the future to achieve their goals, a South African Reserve Bank (Sarb) official said on Friday.

South Africa’s central bank has mainly used interest rates to achieve its primary mandate of price stability. Last year, the government added financial stability as an explicit mandate of the bank.

“It seems quite likely that there might be more use of non-interest rate policy instruments to supplement the interest rates as a way of conducting policy,” said Johan van den Heever, senior deputy chief economist at the bank.

“My guess is that other non-interest rate policy instruments should be seriously looked at as supplementary instruments,” he said at a conference to commemorate the Bank’s 90 years.

The bank has left its repo rate steady at 5.5% this year, with inflation contained inside its 3% to 6% target since February 2010. Inflation is expected to remain within the targeted band until the end of 2012, except for a temporary breach in the first quarter of 2012.

The bank has reduced rates by 650 basis points between December 2008 and December 2010.

It has repeatedly said policy making has become challenging in the current global environment, marked by increased uncertainties and risks to the world’s financial system.

 
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.3%
Rand - Pound
23.97
-0.3%
Rand - Euro
20.48
-0.1%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.4%
Platinum
907.94
+1.2%
Palladium
1,014.30
+1.3%
Gold
2,215.39
+0.9%
Silver
24.91
+1.1%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders