Reserve Bank will defend its mandate, says governor
Lesetja Kganyago says the institution’s role and independence are enshrined in the constitution
The SA Reserve Bank will protect its mandate and independence as enshrined in the constitution should legislative processes on its nationalisation come to fruition, governor Lesetja Kganyago said on Thursday amid political pressure for change. His comments came after the ANC, which voted in favour of nationalising the Bank at its 2017 elective conference, stated in its election manifesto last weekend that the central bank must consider the effect of monetary policy on economic growth when it decides on interest rates. But speaking after the first monetary policy committee meeting (MPC) of 2019, at which a unanimous decision was made to keep the repo rate unchanged at 6.75%, Kganyago said the Bank already did this. “Our mandate is to protect the value of the currency in the interests of balanced and sustainable growth ... anyone who says the Bank must focus on growth has not read the constitution, because we cannot have balanced and sustainable growth if you are running imbalances. T...
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