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Ntswe Mokoena
Gill Marcus - Governor of the South African Reserve Bank.
Concern around the world is moving towards rising oil prices and their second round effects such as inflation, SA Reserve Bank Governor (SARB) Gill Marcus told a University of Johannesburg function Tuesday night.
“We do expect inflation to pick up,” Marcus said. Inflation in South Africa remained within the targeted three to six percent band but Marcus said inflation had started an upward trend.
Food, in particular, she said, was most concerning. “It does raise a warning signal. That means we're on a rising trend and that is not necessarily a good thing,” she added.
Speaking on growth, Marcus said the country was growing but not growing enough. South Africa grew 2.8% in 2010. Growth was expected to average 3.7%.
Growth needed to be sustained, she said, but added that they wanted growth to come from fixed investments as opposed to the traditional consumer-led growth.
“Economic recovery is still fragile,” Marcus said.
Unemployment, which is around 24%, was “structural” according to Marcus. Solutions, she said, included improving education and skills.
On the rand, Marcus reiterated that the bank had no preferred level for the rand exchange rate but noted that a “strong currency helps you with your imported costs of oil.”
The SARB spent around 50 billion rand in international reserve accumulation in 2010 as a measure to among others reign in rand strength.
“We continue to build our reserves but there are trade-offs,” Marcus said
The Governor warned that while the recession was over, recovery in many countries was still in progress.
“There must be an awareness that it is not all simply plain sailing from here.” - I-Net Bridge
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Geyser, wrote
How could they have made this Communist woman governor of SARB? I guess she must have the right connections in the financial world which is run by her tribe!
Dune Drifter, wrote
Why does the government keep saying the recession is over, when we all know it is far from over,and the rubbish about inflation, how can the ridiclous increases in petrol have such a small increase on inflation?Again the man in the street is going to get screwed on the new fuel increases, hello to more unemployment and closure of more businesses,less taxes collected and so it goes on.
Eish, wrote
Graham F, wrote
And ask that wizz-kid of woodwork where the money is coming from to buy all the gold, diamond & coal mining shares to repay investors for the cost of investment in developing these industries.
Anonymous, wrote
What economic growth? S.A. currently undergoes a systematic process of de-industrialisation, driven by ANCCosatu policy of hatred mongering, Black Economic Entitlement the serious increases in risk doing business under the current political system. The way forward is DIS-INVESTMENT to countries where one's effort and commitment and skill is appriciated, rewarded and supported to the benefit of all.
Anonymous, wrote
What economic growth? S.A. currently undergoes a systematic process of de-industrialisation, driven by ANCCosatu policy of hatred mongering, Black Economic Entitlement the serious increases in risk doing business under the current political system. The way forward is DIS-INVESTMENT to countries where one's effort and commitment and skill is appriciated, rewarded and supported to the benefit of all.
ILoveSA, wrote
Advocate Ballem gets a 10 for effort but a 0 for originality. Had he told the judge, "jou Ma se vuil d.os" he might have scored a 5. Gil Marcus (aka Shamu)we know you're Ultra Slim Fast repeat offender, but what's up with wearing a mumu everyday girl? Stay close to the shore lest somebody harpoons your ass.
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