Protector must ‘meet deadline’
PUBLIC protector Busisiwe Mkhwebane “must meet” a high court deadline in a case about the Reserve Bank’s mandate to avoid creating market instability, the bank said on Monday.
Market stability is politically sensitive because ratings agencies downgraded the country’s debt in April and S&P Global and Moody’s have warned that pressure on bank independence could spark a deeper cut. Mkhwebane in June proposed changing the bank’s mandate to focus on promoting growth – rather than currency and price stability.
The proposal sparked a plunge in the rand and attracted criticism from Finance Minister Malusi Gigaba. It was quashed by the Pretoria high court, which said the proposal lacked merit and was ill-considered because the bank’s mandate is fixed in the Constitution. The court invited Mkhwebane to respond to its ruling. The hearing is expected to start on December 5. – Reuters