Today I will provide a brief overview of two of these initiatives namely, the new Capital Accord and the Basel Core Principles, which have been adopted under the auspices of the Bank for InternationaI Settlements (BIS). I will pay particular attention to how these initiatives impact on the regulation of banks in South Africa.
Finally, while the major policy actions to augment food supply may not be in the domain of monetary policy, it may have to perform a careful balancing act so that a sharp action does not choke off supply response and a weak response hardens inflationary expectations.