Rethinking the SARB Mandate for Inclusive Growth

The Institute for Economic Justice (IEJ) has submitted recommendations to Parliament’s Joint Constitutional Review Committee to expand the South African Reserve Bank's (SARB) mandate. The IEJ argues that the current focus on inflation targeting through high interest rates hinders sustainable growth and fails to address external inflation drivers like climate change. The submission advocates for a dual mandate balancing price stability with developmental outcomes, including employment and green structural transformation, and calls for stronger coordination between the SARB and the Minister of Finance to align monetary and fiscal policies for a just transition to a low-carbon economy.

• The SARB's current focus on inflation targeting is viewed as detrimental to sustainable growth because it relies on high interest rates that limit economic demand and investment, while failing to address external inflation causes such as climate change and volatile food and oil prices.
• The IEJ recommends expanding the SARB mandate to include employment, poverty reduction, and green structural transformation, aligning it with dual mandates used by other global central banks to balance price stability with developmental goals.
• There is a need for increased coordination between the SARB and the Executive, specifically the Minister of Finance, to create fiscal and monetary policy synergy necessary for financing a just transition to a low-carbon economy.

APA

iej_admin (2025). Rethinking the SARB Mandate for Inclusive Growth. Institute for Economic Justice. https://iej.org.za/resource/submission/submission-sarb-mandate-reform/

Chicago

iej_admin. Rethinking the SARB Mandate for Inclusive Growth. Institute for Economic Justice, 2025. https://iej.org.za/resource/submission/submission-sarb-mandate-reform/.

Wikipedia

{{cite press release |last1=iej_admin |title=Rethinking the SARB Mandate for Inclusive Growth |publisher=Institute for Economic Justice |date=31 May 2025 |url=https://iej.org.za/resource/submission/submission-sarb-mandate-reform/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{iejadmin2025rethinking, author = {iej\_admin}, title = {{Rethinking the SARB Mandate for Inclusive Growth}}, publisher = {Institute for Economic Justice}, year = {2025}, month = may, url = {https://iej.org.za/resource/submission/submission-sarb-mandate-reform/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }