Chris Loewald on the Monetary Policy response to the Coronavirus pandemic in South Africa: why buffers matter

8 April 2020

Amidst the Coronavirus Pandemic and an economic downgrade, we speak to Dr Chris Loewald shortly after the Monetary Policy Review. As the Head of the Research Department at the Reserve Bank, and a member of the Monetary Policy Committee, he provides insights into how monetary policy can be used, alongside public health and fiscal policies, to protect the economy. After two quarters of slow economic growth in the South African economy, the real contractionary nature of the Coronavirus pandemic comes at a difficult time. Fortunately, with relatively low inflation, there is room for monetary policy to support our economy. By lowering interest rates, easing capital requirements and improving liquidity, the Reserve Bank supports businesses to continue to operate and earn income. Learnings from this pandemic reiterate the importance of creating a buffer during good times in order to ease the bad times.

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The beat used in this production, called ‘Resolutions’, is royalty free and can be found at freebeats.io and the photo is by Captureson Photography and can be found on Unsplash.