By Kopano Gumbi
South Africa’s Finance Minister Enoch Godongwana told Reuters on Wednesday that he was not yet convinced about lowering the country’s inflation target, a move which the central bank governor says is needed to make the economy more competitive.
Teams from the central bank and National Treasury, which falls under Godongwana, have been in discussions to identify a more appropriate inflation target than the current 3% to 6% range.
The target is set by the finance minister in consultation with the central bank governor.
“I’ve not firmed up my mind as to whether we should change the target, I don’t know whether the work will convince me otherwise,” Godongwana said in an interview, making his first public comments on the issue since the technical work got under way.
“To arrive at that target is not going to be painless, what are those costs associated with that and how
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