Minister of Finance, Enoch Godongwana says National Treasury has no plans to lower the current inflation target. This after the SA Reserve Bank announced that it will start targeting the 3 inflation target and not 4,5 mid-point under the 3 to 6 range.
In a statement, Godongwana says its important to clarify his position on this issue due to certain expectations that have been created.
According to the statement, the minister has no intentions to confirm the move to a 3 target at the next Medium-Term Budget Policy Statement MTBPS.
The statement says that it is well-established that policy making responsibility in this area resides with the Minister of Finance, working with the President and Cabinet, who sets the inflation target in consultation with the South African Reserve Bank SARB.
It added that the Reserve Bank then operates independently in its pursuit of the inflation target.
