Kganyago Says SARB Already Factors Growth & Employment Into Its Thinking

The Q&A part of the press conference with SARB Governor Lesetja Kganyago has ended, with the official choosing to finish by addressing a question about the recent proposals to change the central bank's constitutional mandate.

• The Governor initially deflected the question, stressing that the central bank operates within the scope of its constitutional mandate ("we are not legislators"), which can always be changed in a democratic process.
• He then dropped multiple hints reaffirming his scepticism towards the proposals to expand the SARB's remit to include job creation and growth. Such views have recently been voiced by several senior ANC officials.
• Speaking on the sidelines of the Davos forum, Kganyago told CNBC Africa that the expansion of the SARB's mandate would make no sense, as the central bank lacks the tools to address structural problems with employment.
• The official reiterated this assessment today, emphasising that growth and employment already feature in the central bank's thinking and are frequently cited in the MPC statements.
• Kganyago noted that price stability is a necessary but not sufficient condition of balanced and sustainable growth, argues that high inflation is not a pro-growth strategy. He concluded by saying that historically "unorthodox policies have led to exactly orthodox outcomes."