MPC interest rate meeting begins with Gill Marcus

By Staff Writer
There is a new Guv in town, Gill Marcus, and today she begins her first Monetary Policy Committee meeting as her tenure as The Guv, begins. In her role as the governor of the Reserve Bank she will be mainly responsible for maintaining price stability, which means she will deal with keeping inflation under control. The MPC reports on Tuesday 17th December. So what is the expected outcome?

 

  • Most think no change to interest rate
  • Minority favour 50 basis point cut
  • Any policy changes will take place later

 

The new Guv is just stepping into her tenure and this is little doubt that the current MPC meeting will follow the form of previous meetings. Any changes that may be made to policy are not likely to be effected until next year in 2010. One of the major changes to the MPC was the introduction of monthly meetings this year in response to the financial crisis. This may now revert back to the every second month meeting that was in effect previous to the crisis.

The Reserve Bank has been pursuing a policy of inflation targeting, which has some detractors, but the policy appears to have worked with inflation now only a touch outside of the target band. There appears to be little likelihood of a rate cut coming this month. Inflation targeting via interest rates essentially controls the money supply and takes some time to filter through into the real economy. Marcus has a big role to step into and it will be interesting to see how she does. As usual the announcement will be on webcast.

Recent Articles

Featured Register your customary marriage or lose the right to inherit estate

December is that time of the year when we will see at least one suitor sending his uncles to negotiate the price of his future wife. Lobola, as the bride price is known, has always been an important element of the African marriage.

Read more

Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)