Daniel Mminele: The impact of a changing global environment on African economies and policy

Address by Mr Daniel Mminele, Deputy Governor of the South African Reserve Bank, at the Central Banking Seminar of the Federal Reserve Bank of New York, New York City, 2 October 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

Ladies and gentlemen, good afternoon.

Thank you to the New York Fed for again inviting me to address this prestigious annual seminar where major topical issues are discussed. This year is no exception. The theme of 'less accommodative policy amid questions about the global order' has been a key focus of investors and policymakers alike for quite a while already, and clear answers are still not forthcoming. Are we just witnessing a temporary correction of financial markets amid an otherwise benign economic environment, or are disruptions large enough to challenge global expansion, especially in emerging economies? If more severe challenges were to occur, would there be sufficient global cooperation to deal with them in a cohesive manner? I certainly will not pretend to have clear answers to these questions, but will try to provide some perspective, looking specifically at how the changing in global environment is affecting South Africa and South African Reserve Bank's (SARB) reaction thereto. I will also pay attention to the challenges facing the rest of Sub-Saharan Africa and what to possibly expect next.