South Africa-Economy-Banking

S/Africa’s apex bank unaccountable if 'others' interfere in operations – Official

APA-Cape Town (South Africa)

A central bank cannot be held accountable if "other actors" can sway its actions, South African Reserve Bank (SARB) governor Lesetja Kganyago said on Wednesday.

According to media reports monitored here, Kganyago told guests at an event hosted by the University of Stellenbosch Bureau for Economic Research in Cape Town on Wednesday evening that the SARB must remain independent and without fear and should "not cut interest rates just to accommodate someone – but to act in interest of society."

"If SARB had no independence then so-called 'better' objectives could be imposed on the central bank. But are these 'better' objectives just wishful thinking?" he asked.

The governor said that the SARB would continue to work with government on how to best achieve the bank's mandate.

"We are at a time when our country is embarking on a course of political and economic renewal," Kganyago told the audience.

He obtained an honorary doctorate from the university in December.

NM/jn/APA

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