Godongwana awaiting inflation-targeting report

Finance Minister Enoch Godongwana said he is waiting for a report on the country’s inflation-targeting dispensation and he hasn’t decided whether it should be adjusted.

“I do not have any views at the moment,” Godongwana said in an interview in Cape Town on Wednesday.

“All I do know is that there is a standing committee between ourselves and the Reserve Bank, and one of the matters they are discussing is the level of the inflation target. In the absence of a report tabled before us, we can’t form an opinion.”

The central bank’s 3% to 6% inflation target hasn’t been changed since it was introduced in 2000. Its governor, Lesetja Kganyago, favours shifting to a single-point target and has said that aiming for 3% would lead to lower interest rates than otherwise would be the case.

South Africa’s annual inflation rate was less than 3% in March and April, and the