HILARY JOFFE: The president must act to avert a messy succession at Reserve Bank
Delay and indecision in appointments could cause real economic damage
News of Reserve Bank deputy governor Kuben Naidoo’s resignation has come as a reminder that it is a delicate time for the Bank.
Its succession is an issue, with the contracts of all of its four governors due to end or be renewed over the coming year. This is unfolding at a delicate time in a country heading into elections and a world heading into a higher-for-longer interest rate cycle. The strength and credibility of the Bank’s governors matters for interest rates and inflation. It matters as much, if not more, for SA’s banks and financial markets. And even if the credibility of the institution seems safe in the shorter term, policymakers should look out too for the risks in the longer term. ..
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