Kganyago sticks to his inflation-targeting GUNS

The role of the SA Reserve Bank has been brought into question yet again as the Covid-19 pandemic tears through the country and the economy. Some economists and analysts have called for the bank to expand its existing mandate and use other monetary policy tools at its disposal to help pull South Africa out of its economic slump.

Reserve Bank governor Lesetja Kganyago said the bank’s inflation-targeting framework was the most functional part of the macroeconomic framework, adding that its independence was key to price stability and that quantitative easing – the buying of government bonds directly to stimulate the economy – would be ineffective in South Africa.

Kganyago was speaking at a webinar hosted by the University of Pretoria on Wednesday, with