Speaking on 702 Talk Radio on Tuesday, Mkhwebane said the central bank's mandate was focused on a "few commercial interests". After the nation submerged into recession amid worldwide credit rating downgrades and erratic governmental policies, SARB has taken action to help South African commercial banks stay afloat, attracting some criticism, calling into question the cornerstone principle of central bank independence.
"No previous government in South Africa has even hinted at (changing the central bank mandate) and Zuma's people now doing it is pretty disconcerting", Peta said.
"The Reserve Bank has consulted its legal team and has been advised that the remedial action prescribed by the Public Protector falls outside her powers and is unlawful", SARB said in a statement. Absa bank, which bought Bankorp in 1992, should reimburse the state, according to Mkhwebane, the public protector.
S&P Global Ratings and Fitch Ratings Ltd. downgraded the foreign-currency debt of Africa's most industrialized economy to junk after President Jacob Zuma shuffled his cabinet and fired Pravin Gordhan finance minister.
Spending cuts have become increasingly significant for South Africa as it aims to cut its budget deficit to 2.6 per cent of national output by 2019/20 from 3.4 per cent now.
That marks a slight acceleration from April's 5.3% annual inflation-mostly reflecting higher food and transport costs-but is still within the South African Reserve Bank's target range of 3% to 6%.
Gordhan, sacked by Zuma in what was seen as a political move, was a favourite among worldwide investors.
Shiv Sena rebellion ends, will now support BJP's Presidential nominee
Thackeray said all the party legislators and MPs will support Ram Nath Kovind , nearly clearing his way to Raisina Hill. A final call on the anti-Kovind candidate will be taken at a meeting of the opposition front June 22, Raja said.
SARB responded that it is not within the Public Protector's authority to make recommendations on how the central bank should operate.
Mkhwebane had made the proposal in a statement where she delivered her findings on an apartheid-era bailout of Barclays Africa Group.
The independence row has also highlighted divisions within the tripartite alliance of the ruling African National Congress, the country's biggest union, Cosatu, and the South African Communist Party (SACP).
Another dispute with implications for the economy involves the government's call for a swifter and more robust transfer of control of the mining industry from white interests to members of South Africa's black majority. Critics speculate that the proposed changes could open the door to more corruption and will not necessarily help the South Africans who are supposed to benefit.
Tito Mboweni, a former Reserve Bank governor warned against meddling with the central bank's independence, which he noted had been agreed as a "covenant" between bank and government.
The rand weakened as much as 1.6 per cent on Monday after Mkhwebane's recommendations, but on early Tuesday it had recovered some ground following the central bank's comments, trading 0.45 per cent weaker at 13.0584 per dollar.
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