Gordhan’s ‘New Mandate’ Won’t Change Rates Policy

South African Finance Minister Pravin Gordhan said he gave the central bank this week more flexibility to take economic growth into account when setting interest rates. Analysts say little has changed.

In a letter to central bank Governor Gill Marcus on Feb. 16, Gordhan said monetary policy should be conducted in a “flexible” manner and that “temporary deviations” of inflation from the target are allowed when there are price shocks. Gordhan told 702 Talk Radio today that the letter represented a “new mandate” for the Reserve Bank.