‘Reserve Bank will stay independent’

President Cyril Ramaphosa has given his assurance that the Reserve Bank will remain independent.

Speaking to a business delegation ahead of the World Economic Forum (WEF) in Davos next week, Ramaphosa addressed concerns about the independence of the Bank following the release of the ANC’s manifesto last week.

“The manifesto had a paragraph on a wish and an aspiration, acknowledging that the

Reserve Bank is independent and that there is no intention to tamper or tinker with the independence of the central bank.

“The wish that is expressed is that as it goes ahead with monetary policy machinations, it will keep an eye on employment,” Ramaphosa said.

“The Reserve Bank will tell you that that’s precisely what they focus on as they go on with their monetary policy type of work.

“It shouldn’t alarm anyone. What would have been alarming is if the governing party said we wanted to change the mandate.”

Speaking at the same event, finance minister Tito Mboweni said there was no need to panic about the debate on the Reserve Bank, reinforcing the idea that the independence of the Bank was nonnegotiable.

“A look at economies across the world will show that the macroeconomic outcomes are much better in countries with independent central banks,” he said.

Ramaphosa added: “As long as we are clear – and this I can say without any equivocation – the independence, standing and role of the Reserve Bank is sacrosanct and will remain independent.

“There should be no debate about that.”

This follows comments by ANC secretary-general Ace Magashule who said that there was a push to nationalise the Bank over the next five years.

Ramaphosa and Mboweni’s comments come a day before the conclusion of the meetings of the monetary policy committee and the announcement of the repo rate on Thursday.