GROWTH
LUMKILE MONDI: How SA’s capricious government impedes the Reserve Bank
When Reserve Bank governor Lesetja Kganyago presented the outcomes of its monetary policy committee (MPC) meeting last week, his concerns over average wage growth were striking. It was not about the fact that average wage growth remains elevated, at about 7% over the forecast period, but his concern over the perceived lack of support from the government in promoting public sector wage restraint. The takeaway message from the MPC’s statement is the glaring lack of policy coherence in the government. Perhaps it has to do with the instability at the Treasury, which has experienced an exodus of technocratic capacity.A resolution from the ANC’s elective conference in December called for the nationalisation of the Reserve Bank. Asked about the proposed move Kganyago welcomed the resolution, alluding to the Reserve Bank’s readiness to engage with policy makers in the discovery process of the impact of such a change. The ANC’s approach to the Bank and broader discomfort with the market is a...
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