long - run investment and growth, and thus fulfil its constitutional mandate of ‘ protecting the value of the currency in the interest of balanced and sustainable economic growth in the republic ’. concluding remarks the mpc faces a difficult balancing act. we do not want to unduly constrain an already weak economy, but we must also ensure that the average south african ’ s purchasing power remains intact. hence, the repo rate may rise gradually over the medium term, in a manner consistent with keeping inflation inside the target range. however, we are not bound to any particular path of action. rather, the mpc will continue to conduct policy commensurate with the forecast and the balance of risks as these stand at the time of each meeting. thank you. page 8 of 8

daniel mminele : the globalised nature of central banking address by mr daniel mminele, deputy governor of the south african reserve bank, at the insead alumni association dialogue, pretoria, 28 may 2015. * * * introduction good evening, and welcome to the south african reserve bank. insead is internationally recognised for excellence in business education. it is not only one of the largest business schools in the world ; insead also has a strong tradition of promoting diversity, with close on 90 different nationalities being represented in each annual intake. i gather that the south african alumni association has 580 members who have attended both mba and executive level courses at insead. it is a pleasure to host and participate in this dialogue with you this evening, particularly in light of the fact that many of you are in senior and executive positions in large companies and hence are important stakeholders in addressing the challenges confronting our country today. the world has become increasingly globalised. this is clearly evident in economic indicators on capital movements and foreign direct investments, international trade, technology transfers, and the expansion of cross - border activity of multinational firms. thus, global considerations are always on the radar screen of policymakers, especially those in small open economies like south africa. in the case of monetary policy, factors such as oil price developments, capital flows, global inflation trends, and exchange - rate developments are some of the considerations that have a bearing on policy stance determination. however, knowing that many of you would have read our mpc statement of last week, my remarks today will not focus on policy, at least not directly. i would rather like to use this opportunity to talk about the globalised nature of central banking. in essence, my remarks will focus on how the financial crisis of 2007 / 08 as well as the role of international forums ( such as the g - 20, the international monetary fund, and brics ) in responding to the crisis, have impacted on the work of central banks. this will also provide the opportunity for me to share with you the involvement of the south african reserve bank in these international forums, which complements the interest - rate setting mandate of the bank. monetary policy before and after the crisis much has been written about how globalisation might impact on the work of central banks and whether it weakens the effectiveness of domestic monetary policy. some have argued that globalisation does indeed dilute monetary policy ’ s effectiveness through its impact on the structure and functioning of markets, while it also pitches global factors as more