Godongwana rebuffs Reserve Bank’s inflation target adjustment

By Thebe Mabanga

Finance Minister Enoch Godongwana has rejected the SA Reserve Bank’s announcement that it is to adjust the inflation target to 3%.

Following the Monetary Policy Committee (MPC) meeting this week where the bank cut the repo rate by 0,25%, Reserve Bank Governor Lesetja Kganyago announced that it would now now use 3% as its inflation target.

Godongwana has hit back at this, stating that he has no intention to do so, and that proper consultation has not taken place.

“As a result of this announcement, an expectation has been created that the Minister of Finance will make an announcement at the Medium-Term Budget Policy Statement (MTBPS) confirming this move to a 3% target. Minister Godongwana has no plans to do this.” the National Treasury said in a statement on Friday.

“It is well established that policy making responsibility in this area resides with the Minister of Finance,