TOP South African politicians including President Cyril Ramaphosa and Finance Minister Enoch Godongwana must act decisively to shutdown the governing African National Congress’s “ill-advised” proposal to change the central bank’s mandate and manage risk perceptions in the lead-up to next year’s elections, the Bureau for Economic Research said.
The BER’s comments come after Gwede Mantashe, the ANC’s chairman, said the party agreed at a conference to change the central bank’s mandate to include job creation, a prospect that rattled investors worried that modifications would weaken the South African Reserve Bank’s independence and commitment to its inflation target.
Ramaphosa later played down suggestions that the change was imminent and Godongwana said an explicit mention of jobs in the central bank’s remit won’t affect its operations.
The central bank’s constitutional mandate is to protect price stability in the interest of balanced and sustainable growth. It has more than doubled the benchmark rate
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
