Is the South African Reserve Bank influenced by exchange rates when setting interest rates?

Gupta, Rangan; Jooste, Charl

dc.contributor.author	Gupta, Rangan
dc.contributor.author	Jooste, Charl
dc.date.accessioned	2015-07-27T05:47:02Z
dc.date.available	2015-07-27T05:47:02Z
dc.date.issued	2014
dc.description.abstract	This paper analyzes the extent to which the South African Reserve Bank (SARB) uses the repo rate in response to exchange rate depreciations. We use a vector autoregression to model the simultaneous linkage between the real effective exchange rate and the policy rate. A combination of short-run and sign restrictions are used to identify the model. The authors’ results show that currency depreciation is important in monetary policy interest rate setting. The exchange rate also reacts significantly to changes in the repo rate.	en_ZA
dc.description.librarian	am2015	en_ZA
dc.description.uri	http://businessperspectives.org/component/option,com_journals/id,6	en_ZA
dc.identifier.citation	Gupta, R & Jooste, C 2014, 'Is the South African Reserve Bank influenced by exchange rates when setting interest rates?', Banks and Bank Systems, vol. 9, no. 3, pp. 32-35.	en_ZA
dc.identifier.issn	1816-7403 (print)
dc.identifier.issn	1991-7074 (online)
dc.identifier.uri	http://hdl.handle.net/2263/49148
dc.language.iso	en	en_ZA
dc.publisher	LLC “СPС “Business Perspectives”	en_ZA
dc.rights	© Rangan Gupta, Charl Jooste, 2014	en_ZA
dc.subject	Exchange rate	en_ZA
dc.subject	Monetary policy	en_ZA
dc.subject	Sign restricted VAR	en_ZA
dc.subject	South African Reserve Bank (SARB)	en_ZA
dc.title	Is the South African Reserve Bank influenced by exchange rates when setting interest rates?	en_ZA
dc.type	Article	en_ZA