Wednesday, March 30, 2011

Marcus talks on nationalisation and inflation

By Lelethu Mquqo
30 March 2011


Reserve Bank Governor Gill Marcus has warned that a debate on the nationalisation of mines should take into consideration how well government-controlled entities function, before deciding “what works”.

Speaking at a small business seminar in Soweto, Marcus said nationalisation should not be an ideological debate.

People should look at entities the state does control and ask what is the most efficient.

He says South Africa has an effective state but many aspects need to be improved.

On inflation, Marcus warned that it was bound to pick up. He reiterated that the central bank would not be soft on inflation, as it is concerned about the impact of rising food and oil prices.

Observers interpret Marcus’ remarks as strengthening expectations that interest rates will start to rise later this year.

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