Shortly after the October MPR, ERSA’s host sat down with Dr Chris Loewald, the Head of the Research Department at the Reserve Bank, and a member of the Monetary Policy Committee to discuss some of the key takings from the South African lockdown experience. We explore the relationship between the nature of the lockdown and how the economy recovers. Exacerbating pre-existing economic constraints, the lockdown has highlighted which direction policy should take to make our economy even more resilient going forward. Given the changes in the global and domestic environment, the interdependence of monetary and fiscal policy matters even more. Should there be a second lockdown, policy makers can gain some insights into what leeway there is for monetary policy to achieve its mandate of maintaining price stability that provides balanced and sustainable economic growth.
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