* ANC contemplates constitutional changes – report
* Reserve bank mandate “narrow,” may require review
* Reserve Bank should weaken rand exchange rate
JOHANNESBURG, March 4 (Reuters) – The ruling African
National Congress (ANC) is mulling reforms to South Africa’s
constitution which would include changing the central bank’s
powers and price stability mandate, a local paper reported on
Sunday.
City Press newspaper quoted the ANC as saying elements of
the constitution that may require review included the “narrow
mandate of the Reserve Bank or the relationship between and
powers of the different spheres of government”.
The government set the bank’s monetary policy goal as
containing inflation, which the bank does with a flexible
inflation targeting strategy, aiming for a 3 to 6 percent
inflation rate since 2000.
The South African Reserve Bank is perceived to be
independent of government even as it regularly consults with the
finance ministry. Its ultimate accountability is to parliament.
Inflation breached the bank’s target in November and stood
at 6.3 percent in January partly on the rising cost of imports
into South Africa.
The Reserve Bank sees inflation returning back within the
band only in the first quarter of 2013.
Continued…
