Johannesburg - The SACP appears to be on a collision course with President Cyril Ramaphosa after the party proposed that Finance Minister Tito Mboweni review the Reserve Bank’s mandate.
The party, which backed Ramaphosa ahead of the ANC’s December 2017 national conference, will hold its special congress in December and among the key proposals is that the central bank must alter its mandate to also focus on growth and employment priorities.
Discussion documents prepared for the end-of-year gathering are agitating for a policy rejected by Ramaphosa during his post-election State of the Nation Address in June.
“We reaffirm this constitutional mandate, which the Reserve Bank must pursue independently - without fear, favour or prejudice. Our constitution also requires that there should be regular consultation between the Reserve Bank and the minister of finance to promote macroeconomic co-ordination, all in the interests of employment creation and economic growth,” Ramaphosa said then.
But the SACP wants Mboweni to “explicitly change the mandate of the Reserve Bank to include growth and employment priorities, with the amount of money in circulation and price stability secondary targets as means to an end and not objectives in their own right.”