ANC NEC says the Reserve Bank mandate must be ‘expanded’
The NEC now wants the Bank to undertake measures that will ‘deal decisively’ with ‘unemployment, poverty and inequality’
The ANC has waded into the debate around the SA Reserve Bank again, with its national executive committee’s (NEC’s) lekgotla agreeing that the Bank’s mandate must be expanded beyond price stability and must include growth and employment.
In term of its mandate the Bank is required to achieve and maintain price stability in the interest of balanced and sustainable economic growth in SA.
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The ANC, at its elective conference in December 2017, resolved that the Bank should be nationalised, but did not, at that stage, talk about the central bank’s mandate.
In its election manifesto in January, the party said monetary policy had to take employment and economic growth into account, but the ANC then insisted that it would not tinker with the central bank’s mandate
ANC secretary-general Ace Magashule made the announcement about the expectations for a revised mandate in a media briefing following the ANC NEC lekgotla at the weekend.
“It was agreed that all deployees will ensure that resolutions of the 54th national conference be fully implemented. In this regard, the ANC NEC lekgotla agreed to expand the mandate of the SA Reserve Bank beyond price stability to include growth and employment,” Magashule said.
He said the NEC lekgotla also directed the government to consider constituting a task-team to explore quantitative easing measures to address inter-governmental debts to make funds available for developmental purposes.
“These measures should consider the inflationary impact on the currency and the poor and all must be done to cushion them. This is a consistent practice by developed countries to save their economies. This will go a long way in dealing decisively with the triple challenges of unemployment, poverty and inequality.”
Meanwhile, Magashule said the current challenges facing Eskom are a national crisis, and that fixing the parastatal should be a top priority.