President Jacob Zuma on Sunday indicated he was satisfied with the way the SA Reserve Bank is handling interest rates.

Responding to a question during an interview on SABC television as to whether he was happy with the way the SARB was discharging its responsibilities, he replied: "I think so far."

The Reserve Bank was an important institution that had helped South Africa absorb the shock of the global financial meltdown.

"I think in the manner in which it was operating, and I think ever since the crisis, I think the Reserve Bank has in fact cut down on the interest rates, which have been the problem.

"I think the people are actually discussing how much it must do it, that's a debate.

"You know that it was tightening it before the impact. Once the impact was there it began to loosen it, and people feel that, no, it must actually loosen it even more."

Zuma said such debates "will never end because, as you know, economists they have got views and views about the same thing."

The president declined to comment on criticism by government's alliance partner, the Congress of SA Trade Unions, of Reserve Bank governor Tito Mboweni.

Cosatu has said it will not support his re-appointment to the position.

"I don't think we could respond to that question of the governor of the Reserve Bank. That's a matter we'll deal with when we get to a particular point. Of course appointments do not please anyone at any given time."

On whether government would have to borrow more to fund its development plans, which would fuel inflation, Zuma acknowledged this was a problem.

"That's part of the problem. Because people think we must do this and we must do that, particularly when there is a crisis, it gets worse.

"I think instead of pressurising ourselves we need to have a possibility to exchange views and really look at what is the best that we need to do for our country," he said.

Sapa

RSS
Digg
de.li.cious
facebook
Absa provides 110% Absa announced on Monday that mortgages of 110 percent are now available...
Find your dream home In the market for a new home? Browse our massive database for the perfect property...
Property slump is over! Smiley face House prices increased by 6.9 percent year-on-year in August...