14 October 2020 - 14:19The Reserve Bank monetary policy committee uses many sources of information to reach decisions on interest rates. One of the more important inputs comes from the quarterly projection model , which generates the main economic forecasts published alongside each MPC statement. However, the importance of the model in the MPC process is often overstated. It’s a tool among other tools. Like all good models, the QPM supports human judgment, but is not a substitute for it.
However, good economic models simplify reality — they don’t attempt to simulate its complexity. By contrast, “black box” models, which give results for everything but can’t be understood, aren’t very helpful. The main function of the QPM is to help structure a story about the future that MPC members can then use to make up their own minds. The forecast process is more about achieving clarity than consensus.
The MPC aims for a high level of transparency, which includes publishing the details of each forecast in a clear and comprehensible format The April forecast included a large shift lower in potential growth , while the July forecast had no such change despite a lower estimate for actual economic growth. The new potential growth estimate, with an upgraded assessment of the third-quarter growth rebound, produced a somewhat smaller output gap for the year than would otherwise have been calculated . This also affected the QPM’s repo rate projection, with a difference of 25 basis points by end-2020.
I just want to say a big thank you to Markdonaldlis I was nobody until a friend of mine introduced me to you it has been nothing but financial success for me , I will continue to share your good name ma’am
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Homeless reunited with families in Durban during Covid-19 lockdownKhuzani is one of the many homeless people who were moved into eThekwini Homeless shelters across Durban since March as part of the municipality’s attempt to mitigate the spread of Covid-19.
Source: SowetanLIVE - 🏆 13. / 63 Read more »
Mozambique publishes proposed model for sovereign wealth fundMozambique is preparing to reap as much as $96bn from liquefied natural gas projects that companies including Total are building
Source: BDliveSA - 🏆 12. / 63 Read more »
State may milk pay-TV operators to fund SABCWhite paper wants an overhaul of the cash-strapped broadcaster's business model as it looks to unlock new sources of revenue to deal with crippling financial problems
Source: BDliveSA - 🏆 12. / 63 Read more »
Source: ewnupdates - 🏆 30. / 53 Read more »
Alviva in talks to buy Tarsus as part of strategy to grow through acquisitionThe technology group says it has spent R629m on buying new businesses in the last few years Making an occasional winning trade, even when you throw your trading plan out the window, may provide short-term pleasure, but entering trades haphazardly can adversely influence your ability to maintain discipline in the long term .Dm for info
Source: BDliveSA - 🏆 12. / 63 Read more »
Mboweni wants mini budget delayed a week because of 'complex decisions'Finance minister Tito Mboweni has asked parliament to reschedule the tabling of the medium term budget policy statement (MTBPS), referred to as the 'mini budget' Just some of the MissingChildren the last few weeks, with FIVE now found deceased 😢 & 15 FOUND SAFELY 🙏 As a non-profit organisation, we are desperate for funding, to continue finding the children that go missing daily in South Africa. WhoWillComeToTheRescueOfOurChildren🙏 Let's just hope they go for cost-saving measures in MYANC (maybe a pay cut for corrupt politicians) and fewer free t-shirts, rather than diverting 500m Rand of hospital funds into politicians' pockets. Get used to the term mini-budget. That's how it's going to be.
Source: TimesLIVE - 🏆 28. / 59 Read more »