Lesetja Kganyago defends Reserve Bank’s mandate
Governor’s speech comes after public protector’s proposal for constitutional change to end institution’s role in inflation targeting
The country needs inflation targeting and the current central bank framework to deal with it remains necessary and credible, says Reserve Bank governor Lesetja Kganyago. Giving the keynote address at a Centre for Education dinner on Monday, Kganyago said the Bank’s mandate to keep inflation low and protect the value of the currency is supportive of economic growth. This comes after Public Protector Busisiwe Mkhwebane ordered Parliament to amend the Constitution to change the mandate of the Reserve Bank, as part of remedial actions following the CIEX investigation, of which the report was released at a briefing in Pretoria on Monday. Such a change would effectively put an end to inflation targeting Mkhwebane’s proposed change is for the primary objective of the Bank to be to promote balanced and sustainable economic growth while ensuring that the socioeconomic wellbeing of citizens is protected. Kganyago said: "If we can keep inflation lower, anchoring inflation expectations, that sh...
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