Is the monetary policy behaviour of the South African Reserve Bank nonlinear

2021 ◽  
Vol 24 (2) ◽  
pp. 193
Author(s):  
Imhotep Paul Alagidede ◽  
Abdul Aziz Iddrisu
Keyword(s):  
Monetary Policy ◽  
South African ◽  
The South ◽  
Reserve Bank

Is the monetary policy behaviour of the South African Reserve Bank nonlinear

2021 ◽  
Vol 24 (2) ◽  
pp. 193
Author(s):  
Abdul Aziz Iddrisu ◽  
Imhotep Paul Alagidede
Keyword(s):  
Monetary Policy ◽  
South African ◽  
The South ◽  
Reserve Bank

scholarly journals Political independence of the South African Reserve Bank: Managing interest rates

2013 ◽  
Vol 13 (1) ◽  
Author(s):  
Ewert P.J. Kleynhans ◽  
Ryan Meintjes
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
South African ◽  
External Input ◽  
The South ◽  
Political Independence ◽  
Reserve Bank ◽  
The Subject ◽  
The Relationship ◽  
Independence Movements

Purpose: The purpose of this article is to determine whether the South African Reserve Bank (SARB) is politically independent and able to operate without undue external influence.Problem investigated: The SARB is under increasing pressure to shift its monetary policy stance in order to boost the country’s competitiveness. Whether external demands have compromised its independence at times has been the subject of debate.Methodology: The study comprised a literature review and econometric analysis of the Bank’s independence. Movements in interest rates were used as an indicator of dependence. The analysis was between actual interest rates in South Africa over the past two decades, and a model of what interest rates should have been during this period, with reference to Taylor’s Rule. Differences between the two were assumed to expose shortcomings in the direction of South Africa’s monetary policy and therefore some degree of dependence.Findings and implications: Movement of the two sets of rates correlated, which suggests SARB independence. The findings did not reveal harmony between the levels of the two sets of rates. However, the latter correlation was not the focus of this study.Originality and value of the research: This study makes an important contribution, as few authors researched the relationship between interest rates and the SARB’s independence scientifically. The study is well timed as the SARB’s independence debate has reached concerning levels.Conclusion: The results suggest almost no level of dependence – which does not necessarily imply that the SARB is entitled to reject all external input, but rather that it can prioritise its objective of price stability over other concerns.

scholarly journals Inflation Targeting Monetary Policy and Unemployment in South Africa

2018 ◽  
Vol 10 (4(J)) ◽  
pp. 88-96 ◽  
Author(s):  
Harris Maduku ◽  
Irrshad Kaseeram
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Monetary Policy ◽  
Exchange Rate ◽  
South African ◽  
Inflation Targeting ◽  
Annual Data ◽  
The South ◽  
Reserve Bank ◽  
The Impact

We analyze the impact of inflation, growth and exchange rate on unemployment in South Africa using annual data spanning 1980- 2017. Using the ARDL methodology we find that there is a negative longrun relationship between inflation and unemployment in South Africa and inflation is significant in explaining unemployment. Other variables of interest, economic growth and exchange rate are also significant in explaining unemployment. We use the findings of our study to propose that the South African Reserve Bank(SARB) should consider revising its objectives so that they can consider getting involved in targeting unemployment so that they help nurse the economy from the wounds of high inequality and poverty. 

Does the South African Reserve Bank follow a nonlinear interest rate reaction function?

2013 ◽  
Vol 35 ◽  
pp. 272-282 ◽  
Author(s):  
Yosra Baaziz ◽  
Moez Labidi ◽  
Amine Lahiani
Keyword(s):  
Interest Rate ◽  
South African ◽  
Reaction Function ◽  
The South ◽  
Reserve Bank

scholarly journals An explanatory model of South African yellow maize futures prices

2012 ◽  
Vol 9 (3) ◽  
pp. 204-216
Author(s):  
S. Van Tonder ◽  
J.H. Van Rooyen
Keyword(s):  
South African ◽  
Goodness Of Fit ◽  
Information Service ◽  
Global Market ◽  
Futures Prices ◽  
The South ◽  
Weather Index ◽  
Significance Level ◽  
Ex Post ◽  
Reserve Bank

This study attempts to identify the important variables that may affect yellow maize futures prices in the South African derivatives market. Data was obtained from the South African Futures Exchange, a division of the Johannesburg Securities Exchange. Weekly data on the rand-dollar exchange rates were obtained from the South African Reserve Bank (SARB). Monthly data regarding import volumes, export volumes, maize consumption and maize stocks in South Africa are available from South African Grain Information Service (SAGIS). Fifteen variables that may be used to forecast futures prices were identified from theory and similar studies. A correlation matrix of these variables with maize futures prices was determined at the 5% significance level. After applying various statistical analyses to test for autocorrelations, stationarity etc., only four variables were left with which to model the futures prices. The R2 of the remaining variables was only 12.21%, indicating a low goodness of fit. Applying the regression model to the ex-post prices clearly indicated that these variables that were identified do not adequately explain the movement in the futures prices. The primary reasons for the low accuracy of the model may be due to the use of the weather index for SA alone (a small contributor in a global market) and the linearity assumption underlying the selected dependant and independent variables may also be unrealistic. Further research is therefore needed to identify more appropriate variables with which to model yellow maize futures prices.

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