South African Central Bank Risks Treasury Ire With CPI Shift

South Africa targets 3% inflation

South Africa’s central bank said it would lower its inflation target from 4.5% to 3%. Reserve Bank Governor Lesetja Kganyago unveiled the policy shift on Thursday after announcing the bank’s decision to cut the benchmark rate by 25 basis points to 7%.Supporters of a lower inflation target say the move will bolster confidence in the country’s economic stability, ultimately helping to reduce government and private sector borrowing costs by reducin…

South African Central Bank Risks Treasury Ire With CPI Shift

South Africa’s central bank has unilaterally lowered its inflation target, bypassing the finance ministry, which insists it alone holds the authority to set policy.

Godongwana rebuffs Reserve Bank’s inflation target adjustment

By Thebe Mabanga Finance Minister Enoch Godongwana has rejected the SA Reserve Bank’s announcement that it is to adjust the inflation target to 3%. Following the Monetary Policy Committee (MPC) meeting this week where the bank cut the repo rate by 0,25%, Reserve Bank Governor Lesetja Kganyago announced that it would now now use 3% as its inflation target. Godongwana has hit back at this, stating that he has no intention to do so, and that proper…