FRIDAY, 11.00AM
RESERVE Bank governor Dr Chris Stals says he is open to proposed changes aimed at increasing transparency in the Reserve Bank’s setting of monetary policy.
Pesponding at the weekend to suggestions that the Reserve Bank’s power to determine monetray policy be curtailed, Stals said he was “fairly neutral” about the possibility of expanding the governor’s subcommittee that determines policy. The Reserve Bank board bears ultimate responsibility for policy, but policy is determined by the subcommittee, consisting of the governor, his three deputies, and another three members required for a quorum.
Said Stals: “I don’t have a serious problem [with expanding the subcommittee], and because of acccusations that I am a power on my own, maybe it would be better to have a broader committee. Maybe it will give more transparency, and improve credibility and understanding.”
The Reserve Bank is accountable to Parliament and performs functions for government, but is a privately owned institution quoted on the Johannesburg Stock Exchange, with 700 shareholders.