Finance Minister Enoch Godongwana has decided to reduce the inflation target to three percent. Earlier this year, Reserve Bank Governor Lesetja Kganyago expressed the bank’s preference to target inflation at three percent, a move lamented by Godongwana, arguing that policy pronouncements would come from the National Treasury. Godogwana says the three percent inflation target is expected to limit government finances in the short term but reduce the cost of living and borrowing for households. He delivered the Medium-Term Budget Policy Statement in Cape Town. Here’s Political Economist Professor Patrick Bond.
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