Targeting Inflation and Full Employment in South Africa

Basil Moore

Chapter Chapter 9 in Keynes for the Twenty-First Century, 2008, pp 175-182 from Palgrave Macmillan

Abstract: Abstract The South African Reserve Bank (SARB) insists that keeping inflation within the 3–6 percent target range set by the government is its most important policy goal. When the expected future inflation rate rises above the target band, interest rates must be increased. Since the inflation rate breached its 6 percent target ceiling this year, SARB has raised the repo rate1 by 250 basis points, to 11 percent, and the commercial banks’ prime lending rate rose to 15 percent. The governor indicated in the 2007 annual report that he is prepared to raise the repo rate further at subsequent meetings to drive inflation within its 3–6 percent target range, irrespective of South Africa having probably the world’s highest unemployment rate.

Keywords: Interest Rate; Monetary Policy; Inflation Rate; Social Contract; Full Employment (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-61113-9_10

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230611139

DOI: 10.1057/9780230611139_10

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().