2001-07-26: Work of Monetary Policy Committee under Review
Last Modified Date:
2020-10-08, 08:15 PM
Media > Media Releases
Professor Philip Mohr of the Department of Economics at the University of South Africa has been contracted by the SA Reserve Bank to review the modus operandi of the 14-member Monetary Policy Committee (MPC) and the work of the Reserve Bank staff supporting the monetary policy decision-making process. In view of this, Professor Mohr also attended the MPC meeting of the 26 July 2001. Professor Mohr’s investigation will be conducted in two stages. During the first stage the emphasis is on the current policy process and the process leading up to the MPC meeting of 26 July. This includes a study of all the preparations for the Monetary Policy Committee meeting such as the relevant documentation; interviews with the MPC members and other key participants; attending the meeting and studying the findings. The second phase of Professor Mohr’s investigation will focus on the policy processes in other countries and on the available reviews of those processes.SA Reserve Bank Governor Tito Mboweni requested a review of the MPC to asses the quantity and quality of information made available to members of the Committee; the efficiency and effectiveness of the inflation forecasting process; the participation of the members of the MPC in forecasting inflation; the transparency of the policy-making process; the standard and appropriateness of the monetary policy statement released after each MPC meeting; the standard and appropriateness of the half-yearly Monetary Policy Review; the adequacy of resources in the SARB’ s research department; and a comparison with other central banks in making policy decisions. Professor Mohr’s final report on the Monetary Policy Committee is expected at the end of September 2001.