Reverse the Reserve Bank’s independence at your peril
SA’s central bank is still among the best run in the world, despite the government's worst intentions
Almost every economic presentation I attend emphasises the importance of SA Reserve Bank independence and cautions how it is at risk.
Russell Lamberti, chief strategist at investment advisory firm ETM Analytics, considers we are in the midst of “the SARB wars” – tussling over who controls the bank and its valuable reserves, who gets to say how it is run, what institutional arrangements should govern its management, and the risks of it being nationalised.
He highlights key legislative changes in 2010 that changed how the bank is governed, giving far more discretion to the government to enact monetary policy...