# A new research has called on South Africa’s Reserve Bank to adopt a more flexible monetary policy framework that accounts for climate risks. Authors Admire Chirume, James Hurungo, and Brandon Chinoperekweyi warn that extreme weather, droughts, floods, and supply disruptions could drive up production costs, inflation, and interest rates, threatening growth and jobs. The authors recommend climate-informed policies, stress-testing scenarios, and investment in resilient infrastructure to safeguard the economy against rising environmental risks.
Study urges SARB to integrate climate risks into monetary policy