Tuesday, January 26, 2010

Calls grow for nationalisation of Reserve Bank

By Khanyisa Tabata
26 January 2010


The Congress of South African Trade Unions fully the supports the proposal in a report to the national executive committee of the ANC, that the Reserve Bank should be nationalised.

Cosatu says it is a dangerous anomaly that a body which should be protecting the public interest when it makes decisions on interest rates should be owned by a group of anonymous private shareholders.

In its reaction to comments by ANC secretary-general Gwede Mantashe that the nationalisation of the Bank could be discussed, the Reserve Bank has said its independence is entrenched in the country’s Constitution and it is not owned by anyone.

Meanwhile the Reserve Bank’s monetary policy committee has decided to keep the repo rate stable at seven-percent. Governor Gill Marcus made the announcement a short while ago.

The rate at which the Bank lends money to commercial banks has been left unchanged since September last year.

Most economists predicted that the rate would be left unchanged, despite demands for a lowering by trade unions and people in debt.

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