Economics
South African Reserve Bank Must Pursue Flexible Policy, ANC Says
- Ruling party reiterates bank’s policy must consider growth
- Central bank’s independence is ‘sacrosanct,’ Godongwana says
Cyril Ramaphosa speaks in Durban on Jan. 12.
Photographer: Rajesh Jantilal/AFP via Getty Images
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South Africa’s ruling African National Congress said the Reserve Bank must consider the impact of monetary policy on economic growth when it targets inflation, re-emphasizing the flexible mandate the government gave the central bank almost a decade ago.
“The ANC believes that the South African Reserve Bank must pursue a flexible monetary policy regime, aligned with the objectives of the second phase of transition,” the party said in its election manifesto which was unveiled on Saturday. “Without sacrificing stability, monetary policy must take into account other objectives, such as employment creation and economic growth.”