The Bank’s commitment to transparent monetary policy has resulted in several initiatives to improve the communication of its policies to the public.
At the conclusion of every MPC meeting, an MPC statement is issued through a press conference by the Governor of the Bank explaining the reasons for the MPC’s policy stance. This press conference is broadcast live on national television and at the same time the MPC statement is released on the Bank’s website.
The Bank also publishes its Monetary Policy Review (MPR) twice a year. This Review is aimed at broadening the understanding of the intentions and conduct of monetary policy. Moreover, the Review analyses the domestic and international developments that have impacted on inflation and motivates the monetary policy reaction to these developments. An assessment of the future outlook for the factors determining inflation as well as the Bank’s forecast of the future path of inflation is provided in the MPR. The Bank also publishes other material from time to time, to increase awareness and understanding of its monetary policy function.
Monetary Policy Forums (MPFs) are also convened by the Bank in order to develop a better understanding of monetary policy. These forums are held twice a year in the major centres of South Africa across all provinces, and representatives of the labour movement, business, government and academic institutions are invited to attend.
The inflation-targeting framework also improves the accountability of the Bank because it provides a yardstick that can be used to measure the Bank’s performance. The Governor of the Bank is required to submit annually a report on the implementation of monetary policy to the Minister of Finance. The Governor also appears regularly in Parliament before the Portfolio and Select Committees on Finance to explain the monetary policy stance adopted by the MPC.