Fitch Ratings expects South Africa’s National Treasury to formally lower the nation’s inflation target to 3% next month, endorsing the central bank’s adoption of the goal in July.
The announcement is expected when Finance Minister Enoch Godongwana presents his Medium-Term Budget Policy Statement on November 12, Thomas Garreau, director for Middle East and Africa sovereign ratings, said in a webinar on Tuesday.
“We do consider that the upcoming medium-term budget speech will formally announce” a 3% target, he said.
The Treasury is in a closed period before the presentation by Godongwana, who’s previously said he’ll make an announcement “as soon as is practical.”
Reserve Bank Governor Lesetja Kganyago announced in July that monetary policymakers now prefer to anchor inflation at the bottom end of their official 3%-to-6% target band that hasn’t been revised since the framework was introduced in 2000.
The lender previously targeted inflation at the 4.5% midpoint.
“Shifting
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