Governor of the South African Reserve Bank (SARB), Lesetja Kganyago told a Parliamentary committee that the bank’s mandate was to focus on inflation and protect the value of the currency in the interest of achieving balanced economic growth.
Senior EWN Reporter, Gaye Davis says this is the first time the bank appeared before the committee since the release of the report by the Public Protector.
In June, Public Protector, Busisiwe Mkhwebane proposed to switch the target of the bank's monetary policy from inflation and currency stability to economic growth.
The emphasis around Kganyago's presentation was the need for the institution to remain independent and that it is one thing to have that independence tried in the Constitution, but it is another thing altogether to make sure that you have people in place who will defend that mandate.— Gaye Davis, EWN reporter
He said that when the Public Protector's report came out with this recommendation (which has to be set aside by a judicial review otherwise it is binding) he was asked if he would resign if the bank's mandate was to be changed.— Gaye Davis, EWN reporter
Davis says Kganyago went to great lengths to explain how its private shareholders have no sway over policy.
She adds that the governor explained that while the bank is responsible for ensuring that monetary policy protects the value of the currency, it cannot deal with structural problems in the economy.
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