Introduction: South African Monetary Policy Regimes

Abstract

Since 1970, South African monetary policy has consisted mainly of direct controls, which ranged from credit ceilings to cash reserve requirements and interest rate controls. These direct controls were aimed at curbing the growth of monetary aggregates to deal with inflation (Aziakpono and Wilson 2010). Of note is the recommendation of the De Kock commission, formed in 1977: market oriented monetary policies.1 The policy recommendations included using a discount policy known as an ‘accommodation’ policy, which was complemented by open market operations, and variable cash reserve requirements.2