SARB Governor Says Inflation `Not an Immediate Concern'

The transcript discusses the South African economy's recovery, focusing on interest rates and the Central Bank's role. It highlights the challenges of making policy decisions during a lockdown due to limited data. The Central Bank's mandate is emphasized, with a clear distinction between its responsibilities and political influences. The discourse on central banks' roles globally is also touched upon.

What is the current inflation target range set by the South African Monetary Authority?

• 5.5% to 6.5%

• 3.5% to 4.5%

• 2.5% to 3.5%

• 4.5% to 5.5%

Why couldn't the 275 basis points of monetary easing be felt in the South African economy?

• The Central Bank did not implement it

• Interest rates were already low

• Inflation was too high

• The economy was under lockdown

What approach is the South African government taking to reopen the economy?

• Full reopening

• Risk-based approach

• Gradual reopening

• Sector-wise reopening

What is the Central Bank's constitutional mandate in South Africa?

• Controlling foreign exchange rates

• Managing public spending

• Ensuring price stability and sustainable growth

• Financing infrastructure projects

What is the Central Bank's stance on responding to political parties?

• They follow political directives

• They do not respond to political parties

• They actively engage with political parties

• They occasionally respond to political parties

Why is it important for central banks to stay within their defined roles?

• To increase their influence in government

• To avoid conflicts with other financial institutions

• To ensure they can make spending decisions

• To maintain their independence and focus on their mandate

Who should make spending decisions according to the Central Bank's perspective?

• Central Bank technocrats

• Public representatives

• Private financial institutions

• International organizations