President Cyril Ramaphosa has confirmed that the African National Congress has no plans to interfere with the independence of the Reserve Bank.
Speaking at the announcement of Davos attendees on Wednesday (16 January), Ramaphosa explained that the ANC had instead asked the central bank to broaden its focus to boost employment and economic growth, reports Reuters.
“The governing party is essentially saying we have got a burning platform with regard to employment, and we would like everyone to focus on the creation of jobs.
“Clearly there is nothing wrong with that,” he said.
As part of its election manifesto released on Saturday (12 January), the ANC called for the SARB to ‘pursue a flexible monetary policy regime, aligned with the objectives of the second phase of transition’.
Reserve Bank governor, Lesetja Kganyago, who has been a strong voice for the bank’s independence, has in the past reiterated that any decisions taken by the monetary policy committee will be data-dependent and focus on the bank’s primary mandate of targeting inflation at 3% to 6%.
While the central bank increased its key interest rate for the first time in more than two years in November, all 16 economists in a Bloomberg survey expect the repurchase rate to remain unchanged at 6.75% on 17 January.