Reserve Bank governor Lesetja Kganyago has vehemently defended the Reserve Bank’s mandate as questions around its independence gather momentum. Speaking at a public lecture at the Unisa Graduate School of Business Leadership on Wednesday, Kganyago said questions about the Bank’s mandate and role relied on rhetoric instead of facts. "Independence needs to be earned. It’s not enough for it to be enshrined in the Constitution. The economic argument is crucial for assessing our effectiveness — and for understanding why the SARB should be independent," said Kganyago. The "tragic rise of poverty" had coincided with rising inflation and weakening growth and the case for the existing framework is very strong, he said. "This suggests that in our current economic environment, rethinking monetary policy is not the best use of our time." Kganyago said the recession had been caused by a collapse in confidence driven by policy uncertainty and that SA has been downgraded by all major credit rating...
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