Reserve Bank mandate will stay, says governor Lesetja Kganyago | Citypress

Kganyago was speaking at the University of Pretoria webinar themed Monetary policy in the shadow of Covid-19 on Wednesday.

The governor said while everyone would like South Africa to reach permanently high growth, this is beyond the powers of a central bank. “For instance, even when the economy was booming, unemployment stayed above 20%. As with growth, the bedrock of this problem is structural, not cyclical. In this case, it’s the legacy of bantustans, apartheid education, and the failure to fix those problems.”

Kganyago’s address comes amid high criticism from some political parties, unions and economists who say it’s time South Africa move from an inflation-targeting monetary policy framework to a more developing-country friendly mandate. Monetary policy must be better coordinated with fiscal policy and South Africa needs to deploy a wider range of pro-growth and pro-investment monetary policy instruments that are compatible with the reconstruction of an economy, reads the document.

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