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SARB in the Crosshairs – 3 Risk Scenarios

SARB in the Crosshairs - 3 Risk Scenarios
How might the ANC change the SARB's mandate?

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The South African Reserve Bank continues to weather pressure from senior African National Congress members over its mandate.

Recently economists from the Bureau for Economic Research (BER) have outlined three possible risk scenarios that could play out. Here is the first scenario…

Scenario 1 – No mandate change, but attacks continue

In this scenario, while no mandate change ever happens, persistent attacks on the SARB potentially unnerve investors, requiring a more hawkish policy stance from the central bank in order to shore up its independence from political influence and the credibility of its commitment to price stability.

To find out about all the scenarios, visit, ‘Warning over repeated attacks on South Africa’s Reserve Bank‘.

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