In current international practice there are a variety of different approaches to this question. Australia of course is a jurisdiction that has an integrated prudential regulator separate from the central bank. Other examples of that structure are Canada and Japan. The United States and Europe have complex arrangements that fall somewhere in the middle.
Recent challenges and developments The current environment in which South Africa’s monetary policy operates, however, has become increasingly more complex over the past year and a half, owing to a mix of both domestic and external factors, which have impacted growth and inflation. The country currently faces a mix of subdued economic growth and relatively high inflation, with risks skewed to the upside.