Kganyago reappointment shows commitment to central bank independence – Basa

The reinstatement of Lesetja Kganyago as governor of the South Africa Reserve Bank (SARB) indicated government’s commitment to the central bank’s independence, monetary policy and stable financial system, the Banking Association South Africa (Basa) said yesterday.

President Cyril Ramaphosa yesterday announced Kganyago’s re-appointment for an addition five-year term as his current term expires in November.

According to Basa, Kganyago has lead a “resolute” defence for the independence of the SARB.

“He is the kind of experienced and mature leader that is necessary as South Africa tries to find its way out of its current economic crisis.”

Kganyago had also managed a responsive monetary policy during a time of fiscal irresponsibility, Basa noted.

The association has however warned that a responsible monetary policy would not be sufficient on its own to achieve the “inclusive economic growth” South Africa required.

“We hope that this is a signal that government is finally acting decisively on a range of economic challenges, including public expenditure, fixing state-owned enterprises, and improving the ease of doing business and investing in the country.”

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