South Africa’s finance minister adopted a 3% inflation target, giving political backing to the central bank which lobbied for the change, while cautioning that debt will now peak at a slightly higher level.
The inflation goal has been lowered to 3% with a 1 percentage point tolerance band, Enoch Godongwana told lawmakers in Cape Town on Wednesday. The central bank’s previous 3% to 6% target range had been in place for a quarter century.