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S.African central bank says it is committed to price stability mandate

South Africa's central bank is committed to its primary mandate of maintaining price stability in the interest of balanced and sustainable economic growth, the bank's governor, Lesetja Kganyago, said in a speech sent to reporters on Thursday.

JOHANNESBURG, June 13 (Reuters) - South Africa's central bank is committed to its primary mandate of maintaining price stability in the interest of balanced and sustainable economic growth, the bank's governor, Lesetja Kganyago, said in a speech sent to reporters on Thursday.

Kganyago, speaking after a row in the governing party over the role of the central bank, said the main contribution that monetary policy could make to economic growth was to smooth output fluctuations over the business cycle.

He added that South Africa's inflation-targeting framework had served the country well and that lower inflation created conditions for lower interest rates.

(Reporting by Alexander Winning)

((alexander.winning@tr.com; +27 11 595 2801;))

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