South African Reserve Bank (Sarb)
Explicit communication from Sarb helped agents predict rate hikes – paper
Authors compare forecasts from 2013 and 2014 to identify whether specific terminology affected forecasting; “rising cycle” talk shaped expectations, paper shows
Sarb mulling changes to cash distribution process
South African Reserve Bank review finds ‘inefficiencies’ in current framework; changes could include alterations to the bank’s ‘branch footprint’ and supply chain
Sarb fines five banks for weaknesses in ‘control measures’
Investec Bank fined largest amount at 20 million rand; local branch of Standard Chartered faces 10 million rand penalty a month after another branch was reprimanded by MAS
Sarb review calls for changes to payment frameworks
An enforcement committee is to be created in the next six months as part of Sarb’s payment system review; the report identifies a number of “inadequacies” with current framework
Sarb to embark on ‘customised’ leadership development, deputy says
Mminele emphasises importance of leadership in addressing economic challenges; central bank to launch new leadership development programme ‘customised’ for each management level
Sarb hiking cycle is paused, not stopped, governor stresses
South African Reserve bank delays further tightening in wake of more favourable inflation outlook; governor insists it is a ‘pause’ and should expectations change the MPC would act appropriately
IMF’s Lipton argues for greater economic inclusion in South Africa
David Lipton urges reforms to remedy the fact that one-third of the working population is “effectively excluded” from the economy; suggests policies to build confidence and lift growth
Slowdown in Brics increasingly down to domestic factors – Mminele
Sarb deputy says structural reform needed to foster global growth; sees role of domestic factors affecting Brics growth increasing since 2013
Sarb faces tough job amid ‘sobering’ outlook, IMF warns
Capital flows, sovereign rating and financial sector health form dangerous links, fund says, though South African authorities stress they have made preparations
Sarb deputy sees tail risks from Brexit but expects storm to calm
Daniel Mminele sees tail risk coming from asset liquidation by UK corporates and investment funds, but if clear communication is given, the ‘storm is likely to calm’
Sarb deputy sees reasons for ‘cautious optimism’
‘Green shoots of recovery’ are starting to show, says Groepe; several and more fundamental patterns suggest the economy is on the mend
Central bank should consider sticky-price inflation as target variable – paper
South African working paper argues central bank should consider sticky price inflation as target variable; sticky prices more persistent and less volatile
People: Sarb gets new comms head; Bulgaria and Portugal welcome new board members
Jabulani Sikhakhane joins South African Reserve Bank; Bank of Bulgaria gets new board member, while Bank of Portugal gets two
Sarb sets out five-year strategy in annual report
Central bank outlines objectives to be achieved by 2020, including around reserves, inflation and counterfeiting; while governor praises progress of financial stability bill
South African rand and Chinese renminbi now tradable on CFETS
Bilateral trading between rand and renminbi will cut costs, Sarb's head of financial markets says, as China makes latest move towards renminbi internationalisation
Sarb bulletin charts divergence in survey expectations
For first time since 2014, average inflation expectations of analysts are higher than those of business people and trade unions; aggregate expectations for inflation to average 6.2% this year and next
No room for complacency despite ratings stability, Sarb’s Myburgh says
South African Reserve Bank to help support credit rating through delivering on price stability and protecting and enhancing financial stability, financial markets head says
‘Uncomfortable’ currency depreciation important for adjustment – Sarb governor
Advantages to depreciation easy to overlook, says Kganyago, noting South African manufacturing and services exports have become more competitive as a result
Sarb ‘pauses’ hiking cycle on improved inflation outlook
South African monetary policy committee votes five-to-one to leave rates on hold; governor stresses central bank is not reversing policy
Sarb reserve management policy sheds light on tranches
South African Reserve Bank publishes investment policy governing allocation of FX and gold; splits reserves into range of tranches and sub-tranches
Sarb hikes rate despite split decision on MPC
Monetary policy committee decides to raise key rate by 25bp after an initial 3:3 split; concerns over inflation remain for some members
Sarb and Bundesbank expand co-operation
Annex to existing MoU will see Bundesbank representative based in the country; two central banks will work together on financial stability, among other issues
Sarb’s Lesetja Kganyago on divergent monetary policies and new supervision
The governor of the South African Reserve Bank talks to Christopher Jeffery about navigating divergent monetary policies, South Africa’s new supervisory regime and nurturing new talent
Wage settlements may force Sarb to hike rates further, deputy says
Sarb may look to tighter monetary policy to curtail any second round inflation effects from wage settlements; headline figure already above target range