Lesetja Kganyago: South African Reserve Bank's MPC Schools Challenge
Address by Mr Lesetja Kganyago, Governor of the South African Reserve Bank, at the launch of the MPC Schools Challenge, Pretoria, 21 July 2017.
Good morning ladies and gentlemen
Decisions whether to cut, increase, or keep interest rates unchanged are of enormous importance to the economy general, and they affect most people, either directly or indirectly. This often raises the question: how do central banks make these decisions, and specifically, what factors do they take into account in making these decisions.
One of the channels that many central banks use to explain how they make these decisions and what factors they take into account is to run a competition for high school learners. Typically, these competitions involve a group of learners forming themselves into a Monetary Policy Committee and making a case either to cut, increase, or keep interest rates unchanged.