. the mpc assessed the overall risks to the inflation outlook to be more or less evenly balanced. the recent downward trend in inflation outcomes were welcomed. as previously indicated, the mpc prefers inflation to inflation to stabilise at around the midpoint of the target range. future adjustment the monetary policy stance will be informed by a careful assessment of the balance of risks to the inflation outlook. while oil prices, electricity prices and the rand continue to pose upside risks to the inflation outlook, these are offset by the downside risks emanating from the weakness in demand and the projected inability of sluggish economic growth to close the output gap even by the end of the forecasting horizon. beyond the volatility of gdp from one quarter to the next, economic activity has disappointed over the past year. from 1. 9 % six months ago, our model ’ s projection for gdp growth in 2019 has now been revised to just 1. 0 %. and while an acceleration is expected over the next two years, the projections for 2020 and 2021 ( 1. 8 % and 2. 0 % respectively ) only indicate, at best, a sluggish recovery in the absence of implementing reforms to restore confidence, attract investment, support growth, and rebuild buffers. should the policy framework be reviewed? as economic growth continues to disappoint, some observers might feel that the sarb is not doing enough to help kick - start economic activity – or, in a word, that the inflation - targeting framework may be less appropriate now than it was in the previous decade, when growth was dynamic and inflation cycles were more demand - driven than is currently the case. this debate does not occur in isolation. in many countries, economists and policymakers are questioning the surprising lack of sensitivity of inflation to shifts in demand and unemployment, the trend decline in neutral real interest rates, and the efficacy of monetary policies as central banks get closer to the effective lower bound on interest rates. page 6 of 11 the mix of subdued demand growth, low inflation and low interest rates is keeping alive talk of ‘ secular stagnation ’, although economists disagree on whether this is a temporary phenomenon linked to post - crisis adjustments or a more permanent one. it is, however, important to take into account the differences between countries and be wary of ‘ one size fits all ’ recommendations. some people, for example, look at the rigidity of expected and actual inflation in the advanced economies, and question whether monetary policy should more formally

remarks by lesetja kganyago, governor of the south african reserve bank, at the press conference to announce the sale of sarb shares to the general public south african reserve bank, pretoria 2 march 2017 members of the media, ladies and gentlemen. we have called today ’ s media briefing to make south africans aware of the opportunity to buy shares of the south african reserve bank ( sarb ). how did these shares become available? some of you will recall that the sarb act1 was amended in september 2010 to, among other things, limit the shareholding in the sarb to 10 000 shares each for a sarb shareholder and their associates. this means that no shareholder and their immediate family, and / or associates, can collectively own more than 10 000 sarb shares. after some shareholders had failed to comply with the legislative measures pertaining to this limitation of shareholding, the sarb applied for, and was granted, an order by the high court of south africa authorising the sale of the shares held by these shareholders and their associates in excess of the statutory limit of 10 000. south african reserve bank act 90 of 1989 page 1 of 4 the high court order was issued on 4 november 2016 : a ) directing affected shareholders, with their associates, to dispose of those sarb shares which they held in excess of 10 000 ; b ) appointing investec securities proprietary limited to act as an independent broker to facilitate the disposal of those shares over a period of two years from the date of the order, at a sale price of not less than a pre - determined market price ; and c ) directed the general counsel of the sarb to do all things necessary to enable the sale of the shares, including signing all necessary documentation and providing whatever assistance is necessary to investec securities proprietary limited. as a result of this process, some 149 200 shares in the sarb have become available for sale. we would like to use this opportunity to diversify our shareholder base, and we would like to encourage all eligible south africans to take up this opportunity to own shares in the sarb. any person is eligible to buy shares in the sarb, except if they already hold, together with their associates, 10 000 of these shares. i must emphasise that the sarb does not have a profit - maximising objective ; our operations are conducted in the broader interests of the country, in pursuit of the sarb ’ s mandate and responsibilities. the mandate and independence of the sarb are entre