Sarb’s Marcus discusses developments in central bank communication

Gill Marcus says communication has become ‘fundamental’ to central bank strategy, but suggests there are limits to usefulness of transparency

Gill Marcus, governor of the South African Reserve Bank (Sarb), on July 28 underlined the importance of effective central bank communication, but said some elements of transparency might not be beneficial.

Speaking at the South African National Editors' Forum in Durban, Marcus said transparency had become a "fundamental" part of central banking operations, in particular specifying the extent of central bank capabilities and providing the markets with predictable monetary policy decisions. Marcus said in the past, "unrealistic demands and expectations" had been placed on the Sarb, which effective communication should correct for.

The governor argued however that certain elements of communication might not be helpful. In particular, she said announcements by some central banks as to the future path of interest rates were too uncertain to be of any benefit. "The reality is that the further we go into the future, the less confident we can be about our future actions," Marcus said.

Click here to read the speech.

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: