The tenure of South African Reserve Bank (SARB) Governor Tito Mboweni ends on Friday and incoming Governor Gill Marcus faces her first test soon thereafter as the market expects a decision on the dates of Monetary Policy Committee (MPC) meetings to be held in 2010.

To accommodate radical economic movements during the recession, Mboweni and the MPC had decided to change the usual bi-monthly meetings to monthly ones earlier this year.

It is possible Marcus could revert back to bi-monthly as signs of recovery emerge and pressure mounts from leftwing groups for lower interest rates at every turn.

"The incoming Governor will be faced with her first baptism of fire in the form of the announcement regarding date changes for the MPC meetings in 2010 — and perhaps an adjustment to the remainder of this year's meetings," said an asset manager in the fixed income market on Thursday.

A "new era" at the Bank

The market sees this as a "new era" at the Bank. Talk has been that Marcus and Mboweni did not get on when she was his Deputy between 1999 and 2004. It is likely that a new era in style of leadership awaits, but whether leftward shifts will be accommodated in actual policy remains to be seen. After all, the MPC does not operate on a strict voting basis, but rather consensus, and thus the mandate of the Bank of price stability will likely continue to trump populist demands, albeit with a more conciliatory demeanour attached.

Earned stripes in the real world

Marcus, with a BCom degree, may not have the traditional doctorate seen as common among heads of central banks (including the local Bank — although Mboweni had a masters), but she has earned her stripes in the real world. She was a member of parliament from 1994 to 1998 and was Deputy Minister of Finance from 1996 to 1999.

There are rumours she may have been heavy handed at times when Absa chairman, so it remains to be seen how she takes to the delicate balancing act between political and the market interests that awaits. Also internally, she will have to manage some high-profile, well-connected, individuals.

"Consensus seems to view this appointment favourably, in particular from a communication perspective. Time will tell whether this will indeed be the case," said the asset managers.

Marcus's first MPC meeting is currently set for 16 and 17 November.

I-Net Bridge

Telkom vs Neotel The new kid on the block, Neotel, is giving fixed line operator Telkom a run for its money.

'Share Sexwale's wealth' Numsa says the immense wealth of Patrice Motsepe and Tokyo Sexwale must be nationalised.

Eskom's big fat lies Eskom called its application for a 45% electricity tariff hike a "smoothed" hike.