PRETORIA, Aug 8 (Reuters) - Price stability is important to help the poor and low inflation allows for more monetary accommodation, South African central bank Governor Tito Mboweni said on Saturday.
He also said in a farewell speech before he leaves office in November that maintaining the bank's independence was vital.
'I have also learnt that price stability is very important for ordinary people. Price stability is for the benefit, in particular, of the poor, it is for the benefit of the entrepreneur,' Mboweni said.
'When inflation is low we are in a position to provide for greater monetary accommodation.'
The central bank's monetary policy committee meets next week to decide on interest rates with most economists expecting the repo rate to remain steady at 7.5 percent.
The MPC paused its cutting cycle in June on concerns about inflation, and while the targeted CPI gauge slowed more than forecast to 6.9 percent in June it remains above the 3 to 6 percent range.
It had cut the repo by 450 basis points since December to help spur an economy that has slumped into its first recession in nearly two decades.
(Reporting by Gordon Bell, editing by Matthew Tostevin) (For more Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com) Keywords: SAFRICA MBOWENI/ (gordon.bell@thomsonreuters.com; +27 11 775 3151; Reuters Messaging: gordon.bell.reuters.com@reuters.net) 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.
He also said in a farewell speech before he leaves office in November that maintaining the bank's independence was vital.
'I have also learnt that price stability is very important for ordinary people. Price stability is for the benefit, in particular, of the poor, it is for the benefit of the entrepreneur,' Mboweni said.
'When inflation is low we are in a position to provide for greater monetary accommodation.'
The central bank's monetary policy committee meets next week to decide on interest rates with most economists expecting the repo rate to remain steady at 7.5 percent.
The MPC paused its cutting cycle in June on concerns about inflation, and while the targeted CPI gauge slowed more than forecast to 6.9 percent in June it remains above the 3 to 6 percent range.
It had cut the repo by 450 basis points since December to help spur an economy that has slumped into its first recession in nearly two decades.
(Reporting by Gordon Bell, editing by Matthew Tostevin) (For more Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com) Keywords: SAFRICA MBOWENI/ (gordon.bell@thomsonreuters.com; +27 11 775 3151; Reuters Messaging: gordon.bell.reuters.com@reuters.net) 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.