Analysts debate Reserve Bank mandate
The African National Congress (ANC) secretary-general Ace Magashule's announcement that the national executive committee (NEC) lekgotla decided that the mandate of the Reserve Bank is expanded to include growth and employment, sparked a debate on whether the Reserve Bank should have a dual mandate.
Several party heavyweights disputed Magashule's stance and reassured investors that Reserve Bank's mandate would not be expanded.
On Thursday President Cyril Ramaphosa released a statement reaffirming the mandate of the reserve bank, describing the current spat as "not helpful".
To discuss the mandate of the Reserve Bank, Bongani Bingwa speaks to Centre for Economic Development and Transformation founding director Duma Gqubule and Wits School of Business head professor Jannie Rossouw.
I think we should change the mandate and the reason for that is that in 1997 former England Reserve Bank governor Mervyn King said: 'Inflation matters are people who only look at inflation and not other issues like employment and the economy.' Two decades later most central banks in the world do not just look at inflation. If you look at the past few months, global growth is slowing down and every central bank in the world is looking to cut interest rates and ours is not.Duma Gqubule, Founding director - Centre for Economic Development and Transformation
He says India on Thursday cut its interest rates for the third time this year because the country's growth rate fell to 5.4% and that is not enough to create growth that will create jobs for 11 million people.
Rossouw says the Reserve Bank should aim at containing inflation because inflation makes everyone in the country poorer.
You cannot compare South Africa to other countries. Inflation is not a policy instrument. The Reserve Bank is ideally suited to contain inflation. When South African tried what Magashule is talking about, things went horribly wrong.Professor Jannie Rossouw, Head - Wits School of Business
If the bank wasn't independent, it would have been a victim of state capture.Professor Jannie Rossouw, Head - Wits School of Business
Listen below to the two pundits discuss their thoughts on what should happen to the Reserve Bank:
The sector is at a tipping point. Arabile Gumede interviews Philippa Rodseth from industry body, the Manufacturing Circle.Read More
According EWN reporter Nthakoana Ngatane, Mokoena says the former MEC came up with the idea of prepayment.Read More
Corruption Watch has released its 2020 report on corruption trends. Arabile Gumede interviews CW's Kavisha Pillay.Read More
Professor Wiseman Nkuhlu reflects on his new book titled Enabler or Victim: KPMG SA and State Capture.Read More
The "new" SAA needs more than R10 billion to take off. Arabile Gumede interviews Intellidex’s Peter Attard Montalto.Read More
News24 journalist Kyle Cowan gives more insight on what the ruling will mean for the attempt to prove that money was laundered.Read More
Human Rights Watch South African director Dewa Mavhinga reflects on the planned march to the Nigerian Embassy against crime.Read More
The number of national recoveries so far is 590,071, which translates to a recovery rate of 89.2%. Gauteng has 193,153 recoveries.Read More
Daily Maverick journalist Ray Mahlaka and Sacca president Zazi Nsibanyoni-Mugambi reflect on government's commitment.Read More
Party leader Herman Mashaba says it is time for citizens to elect people who will serve them and not their political needs.Read More
Trade Collective economist Lebogang Pheko says Ekurhuleni is a huge city that has done its best to meet many challenges.Read More
Executive director at Institute For Security Studies Dr Cilliers says there should be a clear separation between party and stateRead More
Eyewitness News reporter Veronica Makhoali says police have confirmed that they were involved in high-end jewellery robberies.Read More
The government will be introducing coding and robotics to enable children to function, find employment and create jobs.Read More
Prof Adrian Puren says we must understand that people are still getting infected and dying because of COVID-19.Read More
Outa's Stefanie Fick urges the speedy investigation of allegations against the suspended COO of the National Lotteries Commission.Read More
Dr Karin van der Merwe says people must not drop their guards and the elderly and the and vulnerable must maintain their distance.Read More
Hawks spokesperson Brigadier Hangwani Mulaudzi says they are expecting more arrests to be made as they have found information.Read More
Journalist Carlos Amato says we need to reassess the way the state has been dealing with the alcohol industry for many years.Read More
When banking was declared an essential service, for her that really cut deep, making her realise they help with the economy.Read More