South Africa Central Bank Names Makrelov Chief Economist

The South African Reserve Bank (SARB) has appointed Konstantin Makrelov as its new chief economist, ahead of its next monetary policy decision later this month.

Makrelov replaces Christopher Loewald, who proceeded on early retirement in March after years of service at the central bank.

In a statement issued on Monday, the South African central bank said Makrelov will also serve as a member of the bank’s Monetary Policy Committee (MPC) and Financial Stability Committee, placing him at the heart of decisions on interest rates, inflation and the country’s broader financial system.

His appointment makes him the sixth member of the seven-member MPC, the committee responsible for determining South Africa’s benchmark interest rate.

Makrelov joined the reserve bank in November 2018 as lead economist and rose through the ranks to become a divisional head for economic and climate change-related research in January 2024.

Before moving to the central bank, he spent 12 years at National Treasury of South Africa, where he worked extensively on fiscal forecasting and the evaluation of major government policies, including taxation and national energy programmes.

The appointment comes at a crucial time for South Africa’s economy as policymakers continue to balance inflation concerns with the need to support economic growth.

At its last meeting in March, the SARB’s Monetary Policy Committee unanimously retained the policy interest rate at 6.75 per cent, citing persistent global and domestic economic uncertainties.

Makrelov’s elevation is expected to bolster the reserve bank’s analytical capabilities, particularly in areas such as climate-related economic research and fiscal policy, as South Africa navigates a complex global economic environment.