The ABC attended the Monetary Policy Forum on Tuesday, 24 May 2011, at the Reserve Bank. Governor
Gill Marcus and the Monetary Policy Committee (MPC) members presented the Monetary Policy Review
for May 2011, released on the day.
A lot of speculation regarding the possible increase in interest rates has lately been going on amongst
decision makers and in the media. The MPC presented their views (as per the Review document),
identified some important aspects they base their decisions on and provided just enough to say much, but
reveal nothing – leaving one to “read between the lines” towards expected changes in monetary policy.
The MPC perceive the global economic recovery to be on track, taking in consideration the number of
vulnerabilities continuing to characterise the global economy. Global inflation risks have also increased,
particularly in emerging market economies. Many emerging market economies have recently tightened
their monetary policies (with other words increased their interest rates) in response. The domestic
growth prognosis has also improved, even though growth remains below potential.
27.05.2011 / Media Releases