Sarb deputy says political uncertainty will affect policy normalisation

President of South Africa, Jacob Zuma
President Jacob Zuma last week fired the finance minister prompting a credit downgrade.

The increasing uncertain political environment could “complicate” monetary policy normalisation, a deputy of the South African Reserve Bank has said.

Speaking at the Sarb’s annual cocktail dinner on April 4, Daniel Mminele stressed that while rising inflation was necessary for policy normalisation, the macro-financial implications could prove a problem.

“As the forward guidance thresholds are being reached, the question remains whether central banks will once again re-emphasise the broader not