Pretoria: National Treasury has dismissed reports that Finance Minister Enoch Godongwana will make a pronouncement on inflation targeting during the upcoming Medium-Term Budget Policy Statement. This clarification comes after the South African Reserve Bank Monetary Policy Committee announced its preference to target inflation at around 3%.

According to South African Government News Agency, there had been expectations that Minister Godongwana would confirm a shift to a 3% inflation target during the Medium-Term Budget Policy Statement. However, the Treasury has clarified that no such announcement is planned. The policy-making responsibility for setting the inflation target lies with the Minister of Finance, in coordination with the President and Cabinet, who consult with the South African Reserve Bank in this regard. The Reserve Bank then independently pursues the set inflation target.

Minister Godongwana highlighted that any changes to the inflation targeting framework would involve a structured consultation process. This process includes comprehensive discussions between National Treasury, the Reserve Bank, Cabinet, and relevant stakeholders, ensuring that no unilateral announcements pre-empt policy deliberation.

Godongwana reiterated that any necessary adjustments to the target would adhere to the established consultation process, emphasizing the importance of legitimacy and thorough deliberation in policy-making decisions.