Debate on Sarb’s mandate not evidence-based - Kganyago
While the debate was ongoing across the world, the South African Reserve Bank (Sarb) governor said that the local discourse over the fate of the central bank was not evidence-based.
JOHANNESBURG - South African Reserve Bank (Sarb) Governor Lesetja Kganyago on Monday said that he feared society had unrealistic expectations about the function of the institution as pressure mounted for the central bank to act in light of the economic slump caused by COVID-19.
While the debate was ongoing across the world, Kganyago said the local discourse over the fate of the Sarb was not evidence-based.
Last week, the African National Congress (ANC) once again brought up the Sarb, saying that its lekgotla had agreed that it needed to expand its mandate beyond price stability to include growth and employment.
Although Kganyago said that their policy was not to reply to public utterances by political parties, those discussions were worrying.
“These things could impact investor confidence because it sometimes just reflects the fact that we have not been able to cohere around a limited number of agreed actions that we are supposed to take,” Kganyago said.
The governor described the policy debate as “old”, adding that it was settled a long time ago.
Defending the Sarb’s position, Kganyago maintained that they had acted boldly as the kind of urgent steps taken to deal with the COVID-19 impact were unprecedented in the history of the bank.