Gordhan to address inflation-targeting in budget

Finance Minister Pravin Gordhan said on Monday he would address the South African Reserve Bank’s inflation-targeting policy when he unveils the national budget later this month.

He did not say if the announcement would be the government’s proposal or changes to the policy already agreed with the central bank.

The African National Congress’s allies want the Reserve Bank’s mandate broadened, saying it is currently too focused on controlling inflation, leading to relatively high interest rates they say have worsened the plight of the poor.

The ANC agreed with its leftist allies last year to review the mandate of the central bank and possibly widen it to include job and economic growth indicators.

Nearly one million jobs were shed during South Africa’s recession last year, the first in nearly two decades, and Gordhan said on Monday employment creation was still “a major concern”.

The National Treasury said last week it had decided to asses the effectiveness of inflation-targeting with the central bank.

“We are talking, working, thinking, reflecting, interacting with the key stakeholders from within the government and listening to the voices from outside and will inform South Africa where we intend to go on February 17,” Gordhan said in a radio interview on Monday, referring to the budget date.

He reiterated that the independence and mandate of the central bank remained enshrined in the Constitution, despite reports that the ANC has called for the nationalisation of the institution.

“Nothing that has been said so far in any way impinges on the independence and mandate of the Reserve Bank,” Gordhan said.

“South Africans can relax … The central bank will play the role that it is supposed to play and respond to the developing environment the world over as it deems it necessary; in consultation with the Ministry of Finance.” — Reuters

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Institutions of higher learning should commemorate their casualties

The bust of Matikweni Nkuna at Tshwane University of Technology is an example of how we should honour those who fought for equal access to education

Seals abort pups in mass die-off

There are a number of factors — a pollutant, virus or bacteria or malnutrition — may have caused the 12 000 deaths on Namibia’s coast

Deconstructing South Africa’s construction industry performance

The construction industry has contracted sharply, partly due to Covid, and needs to rebalance its focus if it wants to survive

Editorial: SA will be bankrupted by looters

The chickens have finally come home to roost: if we do not end the looting, it will end us

Zuma vs Ramaphosa? Neither is the leader South Africans deserve

Neither statesman could command sufficient authority in an ANC that remains mired in corruption and infighting and at the behest of big capital

E-payments for the unbanked are booming

The pandemic is providing mobile phone network operators with a unique chance to partner with fintech firms and banks to deliver clever e-commerce solutions to the informal sector in Africa

Subscribers only

SAA bailout raises more questions

As the government continues to grapple with the troubles facing the airline, it would do well to keep on eye on the impending Denel implosion

ANC’s rogue deployees revealed

Despite 6 300 ANC cadres working in government, the party’s integrity committee has done little to deal with its accused members

More top stories

The Nigerian government is killing its citizens — again

‘Nigeria kills its people. Nigeria has always killed its people.’

Finance probe into the Ingonyama Trust Board goes ahead

The threat of legal action from ITB chairperson Jerome Ngwenya fails to halt forensic audit ordered by the land reform minister

Ailing Far East Rand hospital purchases ‘vanity’ furniture

Dr Zacharia Mathaba, who purchased the furniture, is a suspected overtime fraudster and was appointed as Gauteng hospital chief executive despite facing serious disciplinary charges

Institutions of higher learning should commemorate their casualties

The bust of Matikweni Nkuna at Tshwane University of Technology is an example of how we should honour those who fought for equal access to education

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday