CAPE TOWN, Opposition party the United Democratic Movement (UDM) says inflation targeting should not be the main and only focus of the South African Reserve Bank (SARB).
The UDM’s Chief Whip i parliament, Nqabayomzi Kwankwa, says he has written to Finance Minister Malusi Gigaba calling on the government to broaden the mandate of the central bank.
He said Sunday that he had made various proposals. The other very important and critical issue is that you have a Reserve Bank that only has a reputation as an inflation cutter and pays no attention to other and more important socio-economic development objectives such as job creation or reducing unemployment in the short term.
Meanwhile, the Chairperson of Parliament’s Standing Committee on Finance, Yunus Carrim of the ruling African National Congress (ANC) party, said the discussion on the mandate of the Reserve Bank was on-going.
He, however, emphasized that broadening the Reserve Bank’s mandate should not be at the expense of financial stability.
Carrim said: The Reserve Bank plays a crucial role in constraining inflation and the advantage of that is that it benefits mainly the poor and low-income earners, because inflation will eat disproportionately into their incomes.
Source: NAM NEWS NETWORK