We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

Communicating with ruthless clarity is always preferred in economic policy as it influences the expectations of market participants. Policy direction, or in central bank parlance “forward-guidance”, can build or destroy confidence, which is necessary for SA’s economic recovery after all the recent negative shocks.

In times of crisis, clarity of communication is even more crucial to dampen volatility, in addition to influencing the formation of expectations. The Reserve Bank monetary policy decision announced on September 17 was one of those in which better communication could have reinforced market confidence, but it instead left me and some other market participants with many questions...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now