Mboweni Says He Will Continue as Central Bank Governor If Asked

By Vernon Wessels

Sept. 2 (Bloomberg) -- South African central bank Governor Tito Mboweni said he will remain in his position next year after his term ends if he is asked to.

``I will complete my current term, '' Mboweni told reporters in Pretoria today. ``If asked to serve, I will.''

The president selects the governor and his deputies for five- year terms.

Mboweni, 49, was appointed by President Thabo Mbeki in August 1999 to lead the Reserve Bank after serving as a labor minister in former President Nelson Mandela's Cabinet. Mbeki, who lost the leadership of the ruling African National Congress to Jacob Zuma in December, steps down as president after elections next year.

The governor oversaw the introduction of inflation targeting in 2000, a policy that has been criticized by the Congress of South African Trade Unions, an ally of the ANC that lobbied for Zuma's appointment as leader.

The Reserve Bank has raised its benchmark interest rate by 5 percentage points to 12 percent since June 2006 as inflation exceeded the 3 percent to 6 percent target range. The inflation rate surged to more than double the target in July, reaching 13 percent, the statistics office said on Aug. 27.

In an interview conducted by the Pretoria News three weeks before and published on Aug. 29, Mboweni said it ``might not be a good idea'' to head the central bank too long.

To contact the reporter on this story: Vernon Wessels in Johannesburg at vwessels@bloomberg.net