South African finance minister not planning to lower inflation target yet
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
South African finance minister not planning to lower inflation target yet
South Africa’s Finance Minister Enoch Godongwana said on Friday that an expectation had been created that he would announce a lower inflation target at the mid-term budget. His comments come a day after the central bank said it would now aim for 3% inflation, not 4.5%. The current target band is too wide and erodes the competitiveness of Africa’s biggest economy.
Item 1 of 2 South Africa’s Minister of Finance Enoch Godongwana briefs the media concluding the G20 finance meeting in Durban, South Africa, July 18, 2025. REUTERS/Rogan Ward/File Photo
JOHANNESBURG, Aug 1 (Reuters) – South Africa’s Finance Minister Enoch Godongwana said on Friday that an expectation had been created that he would announce a lower inflation target for the central bank at the mid-term budget but that he had no plans to do so.
His comments come a day after the central bank said it would now aim for 3% inflation, not 4.5%, despite Godongwana not yet signing off on a formal change to the current 3%-6% target range.
Sign up here.
Setting the target is ultimately the finance minister’s responsibility.
“Any adjustments to our inflation-targeting framework will follow the established consultation process,” Minister Godongwana said in a statement.
“This means comprehensive consultation between National Treasury, the Reserve Bank, Cabinet, and relevant stakeholders – not unilateral announcements that pre-empt legitimate policy deliberation.”
South African Reserve Bank Governor Lesetja Kganyago has been pushing for a lower target for years, saying the current target band is too wide and erodes the competitiveness of Africa’s biggest economy.
Reporting by Sfundo Parakozov; Editing by Alexander Winning
Our Standards: The Thomson Reuters Trust Principles. , opens new tab