MPC November meeting: A view from the Taylor rule. The Taylor rule is a useful tool employed to assess the appropriate monetary policy stance given the developments in global financial markets, local economic activity, and inflation. A consideration of these variables together is essential in ensuring the monetary authority balances various priorities, chief being inflation, and that the policy mandate is achieved within a preferred period. Here we discuss the key variables included in our measure of the Taylor rule, which is similar to the SARB Quarterly Projection Model's.
In this report we will cover:
