South Africa’s central bank governor, Lesetja Kganyago, says it is unrealistic for central banks to target specific employment levels, after the country’s governing African National Congress (ANC) said the bank should broaden its focus.
The ANC, which is trying to woo voters before a May election, in January said that the South African Reserve Bank (SARB) should try to boost employment and economic growth alongside its goal for price stability.
The battle against unemployment has been a cornerstone of the presidency of ANC leader Cyril Ramaphosa since he became South Africa’s president in February 2018.
“Employment levels are determined by many different things, so putting a specific target on it for the central bank to try to achieve is unrealistic,” Kganyago said during a lecture at Stellenbosch University.
Kganyago added that the case for the SARB’s existing inflation-targeting framework was “very strong”, according to a copy of the lecture distributed by the central bank.
