Economics
South Africa Treasury Vows to Respect Central-Bank Independence
- Reserve Bank promises not to comment on fiscal policy
- Statement follows reported comments by deputy minister
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South Africa’s National Treasury respects the independence of the nation’s central bank and will refrain from commenting on monetary policy. And the Reserve Bank promised to do the same for fiscal policy.
The institutions put out a joint statement on Thursday following comments in Business Day newspaper by Deputy Finance Minister David Masondo, appointed in May, suggesting interest rates may be too high. That broke a long-standing unwritten rule for the policy makers not to criticize each other.