No need to change the Reserve Bank’s mandate: finance minister

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South African Finance Minister Enoch Godongwana said the central bank’s constitutional mandate to maintain price stability is sufficient to foster job creation, suggesting there’s no need for that directive to be expanded.

The head of the governing African National Congress’s economic transformation committee last week raised the prospect of widening the South African Reserve Bank’s mandate to help create more jobs and support transformation in the nation’s financial industry.

Godongwana’s comments are further evidence that President Cyril Ramaphosa, who is expected to stand for a second term as leader of the ANC at an elective conference in December, has managed to keep his economic policy intact despite opposition from within the party. South Africa has a 34.5% unemployment rate — the highest on a global list of 82 nations monitored by Bloomberg. The Thomas Piketty-backed World Inequality Lab ranks South Africa as the world’s most unequal nation for which wealth data is available.

 

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