By Gugulakhe Lourie
JOHANNESBURG, July 18 (Reuters) - South Africa's powerful COSATU labour federation has reiterated its demand to have inflation targeting reviewed, its president said on Saturday.
Inflation targeting has been a source of friction between the ANC government and its allies in the Communist Party and trade union movements, who want the policy scrapped on the grounds that it has impoverished their members.
'The constitution says the Reserve Bank acts to balance and protect the value of the currency of the republic. It does not say in order for it to do that it should just stick with inflation targeting as a means only in stabilising a crisis,' COSATU president Sdumo Dlamini told Reuters.
'We say that has to be reviewed in order for the Reserve Bank to also focus on other challenges, in particular job creation ... one major issue that has to be addressed in South Africa.'
COSATU, an umbrella labour federation representing 2 million workers and an ally of South Africa's ruling ANC, helped propel President Jacob Zuma to power.
Dlamini said the federation would debate the issue within the alliance, but if it was not resolved satisfactorily then COSATU would decide how to try to ensure inflation targeting is reviewed at the federation's congress.
Finance Minister Pravin Gordhan said last month South Africa would keep its policy of targeting inflation, which has helped to stabilise prices and encouraged economic growth. (For full Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com/) Keywords: SAFRICA COSATU/ (gugu.lourie@thomsonreuters.com; +27 11 775 3162;) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
JOHANNESBURG, July 18 (Reuters) - South Africa's powerful COSATU labour federation has reiterated its demand to have inflation targeting reviewed, its president said on Saturday.
Inflation targeting has been a source of friction between the ANC government and its allies in the Communist Party and trade union movements, who want the policy scrapped on the grounds that it has impoverished their members.
'The constitution says the Reserve Bank acts to balance and protect the value of the currency of the republic. It does not say in order for it to do that it should just stick with inflation targeting as a means only in stabilising a crisis,' COSATU president Sdumo Dlamini told Reuters.
'We say that has to be reviewed in order for the Reserve Bank to also focus on other challenges, in particular job creation ... one major issue that has to be addressed in South Africa.'
COSATU, an umbrella labour federation representing 2 million workers and an ally of South Africa's ruling ANC, helped propel President Jacob Zuma to power.
Dlamini said the federation would debate the issue within the alliance, but if it was not resolved satisfactorily then COSATU would decide how to try to ensure inflation targeting is reviewed at the federation's congress.
Finance Minister Pravin Gordhan said last month South Africa would keep its policy of targeting inflation, which has helped to stabilise prices and encouraged economic growth. (For full Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com/) Keywords: SAFRICA COSATU/ (gugu.lourie@thomsonreuters.com; +27 11 775 3162;) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.