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Let us briefly #Reflect on the #SARB's first #MPC #Meeting of 2020 and their #MonetaryPolicy decision to cut rates by 25bps from 6.5% to 6.25%...
Everyone with some interest in such matters is without a doubt already aware that the #SouthAfricanReserveBank's #MonetaryPolicyCommittee cut its key #PolicyRate, the #Repo by 25 basis points from 6.5% to 6.25%. The move can perhaps best be summarised by the following statement: 
It is clear from the statement above that the SARB moved on the back of a growth story. They would want to see the level of #inflation creep closer to 4.5% but they didnt tighten to achieve this end. Rather, they provided more accommodation for growth & inflation might pick up...
My current #Working #Research #Topic: "A Review of the #CommonMonetaryArea of #SouthernAfrica: Are Client Countries Better-off De-Linking from the #Anchor #Economy?". I'm using #OptimumCurrencyArea #OCA #Theory to analyse the #CMA arrangement. Draft will be ready January end..!
The #CommonMonetaryArea of #SouthernAfrica or #CMA could seem to some (mostly the technically inclined) to be a no-brainer & a clear natural #OptimumCurrencyArea given the historical links between the #anchor #SouthAfrica & the #clients (#Lesotho #Eswatini & #Namibia)...
Be that as it may, 2020 marks 46 years since the #RandMonetaryArea - #RMA agreement and 34 years since the RMA was revised to establish the #CommonMonetaryArea - #CMA between #SouthAfrica, #Lesotho, Swaziland (now, #Eswatini) and #Namibia...
