Reserve Bank: standing the test of time
State capture has taught SA that institutions matter. Of all the country’s government institutions, the Reserve Bank has proved the most resilient. And, after 100 years, that is not about to change
As the Reserve Bank celebrates its centenary, it can pat itself on the back for getting inflation to shift structurally lower, and for anchoring inflation expectations closer to the midpoint of the target band, without sacrificing economic growth.
This big question now, as the economy begins to recover from the pandemic and inflation starts to pick up, is whether the shift to lower inflation can be sustained in a country with so many structural inefficiencies...