World Economic Forum
Kganyago digs in on central bank independence
Election fever and vacancies created by the departure of some members of the Monetary Policy Committee could be a chink in the armour
Reserve Bank governor Lesetja Kganyago has mounted another strong defence of the Bank’s independence, slamming election-driven “crazy ideas” that may harm investor confidence. “Imagine if you are an investor sitting in London or New York and you want to invest money in SA, and you need to deal with these constant changes with what you think will happen to the institutions,” Kganyago said in an interview in Davos, Switzerland, where he was part of an SA delegation seeking to promote the country to international investors at the annual meeting of the World Economic Forum (WEF). “You are going to say: maybe I should wait because I’m not sure what these guys are doing.” Still, he was reassured by comments from President Cyril Ramaphosa and finance minister Tito Mboweni who reiterated, in the wake of the ANC releasing a manifesto earlier in January calling for policy makers to consider growth and employment when setting interest rates, that its independence is sacrosanct. “I was concerne...