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Monetary Policy in South Africa: From 1994 to now

Author

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  • Nicola Viegi

    (University of Pretoria)

Abstract

The evolution of South Africa’s monetary policy over the past three decades has demonstrated its ability to manage both external shocks and domestic economic volatility. The adoption of inflation targeting and the South African Reserve Bank’s (SARB) role as a “credibility provider of last resort” have shaped monetary policy in response to the country’s structural uncertainties. This paper reviews the trajectory of South African monetary policy from 1994 to the present, outlining key policy shifts, challenges, and outcomes. Monetary policy has a risk management function that is as important as its traditional monetary policy role. The evolution of the country monetary-fiscal policy framework should favour a reduction of long term inflation, and a reduction in the country risk to support an increase in productivity and a reduction in the economy cost-base.

Suggested Citation

  • Nicola Viegi, 2025. "Monetary Policy in South Africa: From 1994 to now," ERSA Working Paper Series 187, Economic Research Southern Africa.
    • Handle: RePEc:rza:ersawp:187
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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