Nokukhanya Mntambo14 October 2024 | 7:06

SARB hails Mboweni for having steady hand on economy during 2008 global financial crisis

The 2008 global meltdown, sparked by the collapse in the value of United States (US) homes, had far-reaching implications for South Africa’s economy.

SARB hails Mboweni for having steady hand on economy during 2008 global financial crisis

FILE: Minister of Finance Tito Mboweni briefs media on the COVID-19 epidemic at OR Tambo building, Pretoria, March 2020. Mboweni passed away on 12 October 2024. Picture: GCIS

JOHANNESBURG - The South African Reserve Bank (SARB) has hailed former governor Tito Mboweni for having what it called a steady hand on the economy during the global financial crisis of 2008.

The 2008 global meltdown, sparked by the collapse in the value of United States (US) homes, had far-reaching implications for South Africa’s economy.

This included volatility in financial markets, a loss in value for the stock exchange, a drop in growth rates, and job losses in the private sector.

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Current SARB governor, Lesetja Kganyago, said that Mboweni’s policy response at the time guided the country through uncertainty.

Overall, the reserve bank said that Mboweni’s implementation of the 3-6% inflation target has been crucial to the central bank’s mandate of price stability.

Efficient Group chief economist, Dawie Roodt, agreed. 

"The one lesson we as South Africans can take from him is that inflation is bad, and with high inflation, economic growth will always be weak."

The South African Revenue Service (SARS) has also hailed Mboweni for helping to stabilise the country’s macroeconomic landscape.