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"Monetary policy will look a little different under Gill Marcus, the newly appointed governor of the Reserve Bank - but she is a strong, independent le..."
Monetary policy "will look a little different" under Gill Marcus, the newly appointed governor of the Reserve Bank - but she is a strong, independent leader who will not allow any party to dictate to her.
This is according to role-players who yesterday welcomed the news of the appointment of Marcus, currently the Absa chairperson.
While it was anticipated that the contract of current governor Tito Mboweni would be renewed when it expired in August, the markets are expected to be "very happy" about Marcus' appointment.
Mike Schüssler, an economist at Economists.co.za, says though it means a lot of changes for a country to go through in one year, with the appointments of new heads for the Treasury, the South African Revenue Service and the Reserve Bank, Marcus is the "most sensible" appointment.
"Marcus is a good candidate and well qualified for the role," declares Jerry Vilakazi, the head of Business Unity South Africa (Busa).
"In our negotiations with her as Deputy Minister of Finance (1996-1999) and the period in which she was Deputy President of the Reserve Bank (1999-2004), she showed that she was a highly competent, independent leader who thoroughly thought through issues and took informed decisions.
"We fully believe she has the ability to do the work without being swayed in any direction by any party," the Busa head said in reference to Cosatu's call for a review of the Reserve Bank's policy of inflation targeting.
Marcus, who yesterday at a media conference declined to comment on the debate, is amenable to a discussion on inflation targeting, commentators believe.
Her controversial resignation as deputy president of the Reserve Bank in 2004 was apparently precisely because she disagreed first with Mboweni's and then president Thabo Mbeki's strict focus on inflation targets.
"She has a very consultative style and we reckon the appointment will create room for a discussion to broaden the mandate of the Reserve Bank not only to look at inflation, but also to take into account factors like job creation and economic growth [when policy decisions are taken]," Cosatu general-secretary Zwelinzima Vavi told Sake24.
"We are very, very critical about the current stance on monetary policy. Our priority is for the whole policy [on inflation-targeting] to be reviewed. We would accept a review of the targets as consolation prize. The current target of 3% to 6% is totally inappropriate and it was a pipe-dream to think we could ever reach it."
Another economist says it is important to investigate whether the current inflation target is fitting for South Africa.
"Proper research has never been done to determine the 3% to 6% - it was simply a thumb-suck. Perhaps the time is ripe for research on establishing the correct band," he reckons.
Vilakazi also says the appropriateness of the current inflation targets needs to be examined, but policy should always be to ensure stability.
One should also realise that the role of the Reserve Bank involves more than simply inflation-targeting, he pointed out.
Busa believed that the Reserve Bank should be permitted to do its job without fear or favour and its independence should be respected by all parties, both inside and outside government.
This is according to role-players who yesterday welcomed the news of the appointment of Marcus, currently the Absa chairperson.
While it was anticipated that the contract of current governor Tito Mboweni would be renewed when it expired in August, the markets are expected to be "very happy" about Marcus' appointment.
Mike Schüssler, an economist at Economists.co.za, says though it means a lot of changes for a country to go through in one year, with the appointments of new heads for the Treasury, the South African Revenue Service and the Reserve Bank, Marcus is the "most sensible" appointment.
"Marcus is a good candidate and well qualified for the role," declares Jerry Vilakazi, the head of Business Unity South Africa (Busa).
"In our negotiations with her as Deputy Minister of Finance (1996-1999) and the period in which she was Deputy President of the Reserve Bank (1999-2004), she showed that she was a highly competent, independent leader who thoroughly thought through issues and took informed decisions.
"We fully believe she has the ability to do the work without being swayed in any direction by any party," the Busa head said in reference to Cosatu's call for a review of the Reserve Bank's policy of inflation targeting.
Marcus, who yesterday at a media conference declined to comment on the debate, is amenable to a discussion on inflation targeting, commentators believe.
Her controversial resignation as deputy president of the Reserve Bank in 2004 was apparently precisely because she disagreed first with Mboweni's and then president Thabo Mbeki's strict focus on inflation targets.
"She has a very consultative style and we reckon the appointment will create room for a discussion to broaden the mandate of the Reserve Bank not only to look at inflation, but also to take into account factors like job creation and economic growth [when policy decisions are taken]," Cosatu general-secretary Zwelinzima Vavi told Sake24.
"We are very, very critical about the current stance on monetary policy. Our priority is for the whole policy [on inflation-targeting] to be reviewed. We would accept a review of the targets as consolation prize. The current target of 3% to 6% is totally inappropriate and it was a pipe-dream to think we could ever reach it."
Another economist says it is important to investigate whether the current inflation target is fitting for South Africa.
"Proper research has never been done to determine the 3% to 6% - it was simply a thumb-suck. Perhaps the time is ripe for research on establishing the correct band," he reckons.
Vilakazi also says the appropriateness of the current inflation targets needs to be examined, but policy should always be to ensure stability.
One should also realise that the role of the Reserve Bank involves more than simply inflation-targeting, he pointed out.
Busa believed that the Reserve Bank should be permitted to do its job without fear or favour and its independence should be respected by all parties, both inside and outside government.
