I wish to thank UBS for inviting me to address you in my beautiful home town. The topic I have been asked to discuss today is monetary policy and inclusive growth. This topic is particularly relevant given South Africa’s income inequality as reflected in the most recently estimated Gini-coefficient of 0,69. The top ten per cent of the population earn approximately 58 per cent of the income and the bottom 50 per cent less than eight per cent. We furthermore have had to contend with structural unemployment, which currently stands at 24,9 per cent. I will now proceed with a brief overview of the concepts of inclusive growth and productive employment before discussing the South African Reserve Bank’s (the Bank) mandate, the monetary policy framework and how the achievement of the Bank’s mandate enables the most appropriate backdrop for inclusive economic growth. Inclusive growth Inclusive growth refers to long-term sustained economic growth that is broad-based across sectors and inclusive of a large part of a country’s labour force, thereby reducing unemployment significantly. Policies that encourage inclusive growth tend to emphasiz
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