By Monique Vanek, Bloomberg.
Finance minister said work on lowering the inflation target is “progressing well” but cautioned against rushing the decision.
“Such decisions should not be taken in haste, without the necessary technical and political engagements that achieve a genuine consensus grounded in a thorough consideration of the social and economic realities,” Enoch Godongwana said in his budget vote speech Tuesday.
The central bank has been in talks with the National Treasury since February 2024 about a new framework.
The bank has repeatedly argued for its 3% to 6% inflation target, which has been in place since 2000, to be adjusted to a single goal of 3%. South Africa’s inflation rate has been hovering near or below that level since October.
Earlier this month, Governor Lesetja Kganyago said a review of the target is close to completion.
Once completed, the recommendations will be presented to Kganyago and Godongwana, with whom the policy responsibility resides with.