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South African Reserve Bank
Monetary Policy Committee
Schools Challenge
 
 
     
 

Overview of the MPC Challenge 

The South African Reserve Bank is the central bank of the Republic of South Africa. In terms of the country’s constitution, the primary purpose of the Bank is to achieve and maintain price stability in the interest of balanced and sustainable economic growth. Together with other institutions, it also plays a pivotal role in ensuring financial stability.
 
The Bank works within a flexible inflation targeting framework. Currently South Africa has a target inflation rate of between 3% and 6%, but which is set by the South African government.
 
The repurchase (repo) rate is a key mechanism that the Bank uses to manage inflation. The Bank's Monetary Policy Committee (MPC) meets six times a year to determine the rate. During their meetings, they analyse a considerable amount of economic information and then decide whether the repo rate should go up, go down or stay constant.
 
After each decision, the Bank’s MPC holds a press conference announcing their decision and the reasons behind it. This announcement is known as the monetary policy statement.
 
The MPC Challenge is a school project being run by the Reserve Bank in Gauteng, Limpopo, Free State, Mpumalanga, Eastern Cape, Northern Cape and the North West. It offers an exciting opportunity for Grade 12 Economics learners and their teachers, to become “members” of the Monetary Policy Committee for a few weeks.
 
The Challenge requires invited schools to nominate a maximum of four Economics learners to form an MPC, analyse economic data and make a recommendation on what  the country’s repo rate should be.
 
 
 
     
 
 
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