Pro­tec­tor must ‘meet dead­line’

The New Age (Western Cape) - - Business -

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 ill­con­sid­ered 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

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