JOHANNESBURG (Reuters) – South Africa’s governing African National Congress Secretary General, Ace Magashule, said on Tuesday that a meeting of the party’s executive had agreed to expand the mandate of the central bank.
The rand extended losses after Magashule’s comments, as investors are nervous about any changes that could harm the independence of the South African Reserve Bank.
“The National Executive Committee lekgotla (meeting) agreed to expand the mandate of the South African Reserve Bank just beyond price stability, to include growth and employment,” Magashule told a news conference in Johannesburg.
Magashule added that the ANC’s executive wanted the government to constitute a task team to explore quantitative easing measures for developmental purposes.
Reporting by Alexander Winning, Editing by Olivia Kumwenda-Mtambo