According to Gill Marcus – Reserve Bank Governor ”The reality is that we probably never really emerged from the crisis, which is now entering its next phase,” There are going to be implications for growth outlooks in South Africa and other regions of the world.

Gill explained her point of views by saying that the recovery in South Africa is unstable, sensitive and really slow in making recovery. She spoke at a Power Breakfast club function that was held at the Johannesburg Country Club.

Gill thinks that there are certain limits to changes that can be made in the monetary policy, in order to support the economic growth of a country. Closing the output gap, a more stable rand, reduction of unemployment and high executive pay are also important considerations but Gill stopped short of saying that there was a new policy to intervene on the rand.

The sustainability of South Africa largely depends on the economic recovery at world level and throughout Europe. “Downside risks are being built into forecasts and despite of the 4.6% growth rate, the output gap is still wide” – said Gill Marcus.

Marcus is due to make announcements for the country’s interest rate decisions on 22^nd July 2010. As of now, no policy guidance rates were revealed in her speech today.

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