DA resolves to protect the Reserve Bank's independence

The DA says the independence of the Reserve Bank must be protected.

Any move by the ANC and EFF to nationalise and change its mandate must be rejected, the party resolved at its congress.

The ANC government should not be allowed to use the Reserve Bank to mask its failure to grow the economy and create jobs.

“The DA rejects threats to erode the independence of the Reserve Bank through nationalisation, as changing its mandate will not resolve the underlying problems in the economy,” the DA congress resolved.

The ANC, at its national conference last year, took a decision to change the central bank’s mandate to play a bigger role in aiding the economy such as job creation.

However, the DA says this must be completely rejected as the central bank cannot be used where government policies have failed.

“The DA places the blame for poor economic growth and joblessness squarely on the ANC’s policies, as well as ANC actions such as corruption and state capture,” the party resolved.

“A DA government will strongly defend and protect the independence of the Reserve Bank as part of a broader strategy to maintain macroeconomic stability.”

The DA says that the independence of the Reserve Bank is enshrined in the constitution and that “populist political formations such as the ANC and EFF scapegoat the Reserve Bank for policy failings taken by the government”.

“The Reserve Bank is only responsible for monetary policy, not trade, fiscal or labour policy.”

The DA has also adopted a resolution that its government would use its national debt to invest in profitmaking sectors.

The ANC has been criticised for using the national debt to fund public sector wages, endless bailouts in SAA, Denel and others as well as on grants instead of sectors that can yield financial returns.

“A DA government will reduce wasteful and unnecessary expenditure in order to protect front-line government services while reducing government debt,” the party resolved.

“A DA government will use debt to invest in economic enablers such as infrastructure and positive multipliers, rather than the ANC’s approach of using debt to fund operational expenditure.”

The party’s congress also rejected a motion that the government should pull out of the Brics group of countries.

Brics is a grouping of five emerging economies — Brazil, Russia, India, China and South Africa.

Those who tabled the anti-Brics motion argued that South Africa was not deriving enough economic value from being a member of Brics.

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