Ricochet News

Governor Marcus to step down

By Charl Bosch - Sep 18, 2014
Governor Marcus to step down

South African Reserve Governor (SARB), Gill Marcus, has announced that she will not be returning as head of the SARB when her current term expires in November. It was reported that after she made the announcement, the price of the rand shot up to R11.10 against the US Dollar, its highest level since February this year.

“This is my last MPC. I have advised the president some time ago that I would not be available for renewal,” Marcus said.

“I think the bank has an outstanding team of leadership, both in the executive, monetary policy, leadership management of the bank.

“Therefore, I'm quite comfortable saying that I'm very happy that whoever the president chooses to succeed as the next governor will continue with the strength of this institution and do an excellent job.”

Her announcement comes after the decision was made to leave the repo rate unchanged at its current 5.75%. Marcus cited the reasons for leaving the rate untouched, as being an improved inflation outlook and weakening economy.

“Despite the 75 basis point increase so far this year, monetary policy remains accommodative, and will continue to be supportive of the domestic economy subject to achieving its primary inflation targeting objective,” she said.

At the same time, the bank also lowered its expected economic growth rate from 1.7% to 1.5%, while inflation was readjusted from 6.3% to 6.2%.


CAPTION: Gill Marcus has announced that she will not return as South African Reserve Governor after her current term expires in November. IMAGE sourced from m.timeslive.co.za