Answer to Question #125793 in Macroeconomics for Dineo

Question

Discuss the monetary policies employed by the south African reserve Bank to alleviate the economic impact of covid19

Answer 1

The monetary policies employed by the South African Bank to alleviate the economic impact of covid 19 are:

• The Reserve Bank of South Africa cut the repo rate by 100 basis points at which it lends to commercial banks in order to provide additional liquidity into the South Africa financial markets
• The SARB has introduced inflation target in which the central bank announces an explicit to improve accountability of the bank since it provides a basis that can be used to measure the performance of the bank
• The Reserve bank provides debt relief fund only for clients impacted by covid 19 with a sustainable business plan