Critics have been pushing hard for the Reserve Bank’s mandate to be broadened to make it consider growth and employment concerns directly, not just inflation. But according to new ground-breaking research, the Bank already does so.

The Bank is a flexible, forward-looking inflation targeter that gives considerable attention to labour market conditions when deciding the path of interest rates, according to an empirical study undertaken by Laurence Harris, a professor of economics in the School of Finance & Management at SOAS, University of London, and former National Treasury economist Shannon Bold.

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