Does the Household Financial Wealth Explain the Asymmetric Response of Consumption to Monetary Policy Shock in South Africa?

  • Eliphas Ndou
  • Nombulelo Gumata
  • Mthokozisi Mncedisi Tshuma


Evidence shows that in absolute terms, the decline in household consumption due to the repo rate tightening shocks exceeds the increase in household consumption following a repo rate loosening shock of the same magnitude. In addition, evidence show the asymmetric is linked to the role of household financial asset channel. Furthermore, household wealth amplifies the proportion of fluctuations very much in household consumption due to repo rate tightening shocks compared to those due to repo rate loosening shock.


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© The Author(s) 2019

Authors and Affiliations

  • Eliphas Ndou
    • 1
  • Nombulelo Gumata
    • 2
  • Mthokozisi Mncedisi Tshuma
    • 3
  1. 1.South African Reserve BankPretoriaSouth Africa
  2. 2.PretoriaSouth Africa
  3. 3.National Planning Commission SecretariatPretoriaSouth Africa

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