South Africa’s finance minister rebuffed a call by some in the nation’s governing party for him to push the central bank to use measures other than lifting borrowing costs to curb inflation, as he reaffirmed the bank’s independence.
“I’m not in discussion with the central bank on that matter,” Godongwana said Tuesday in an interview with Bloomberg Television at a meeting of Group of 20 finance chiefs in Gandhinagar, India. “The central bank in South Africa, by constitution, is independent and its purpose is defined as that of protecting the value of the currency in the interests of balanced growth.”
Godongwana regularly meets with central bank Governor Lesetja Kganyago to make proposals on the direction of policy. While the ANC has previously called for the central bank’s mandate to be broadened to shore up the economy, it has said it’s committed to preserving the bank’s independence.
Those craving relief from elevated borrowing costs should understand that the way to get them is price stability.
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