South Africa lowers inflation target from 4.5% to 3%
Sarb governor’s wish finally granted as finance minister announces change during budget review
South Africa’s government has lowered its inflation target in an effort to anchor price expectations and boost growth – a move the central bank governor had repeatedly called for.
In the mid-year budget review on November 12, finance minister Enoch Godongwana announced that the South African Reserve Bank (Sarb) would now target inflation at 3% with a tolerance band of one percentage point. The Sarb had previously targeted prices at a range of 3–6% with a midpoint goal of 4.5%.
Godongwana said the
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