South Africa is likely to amend its inflation target.
This is according to the deputy minister of finance, David Masondo, who said an announcement on the target would be made “very soon”.
Currently South Africa’s inflation target rate is between 3% and 6%. There have been calls in recent times for this target to be lowered. The governor of the South African Reserve Bank, Lesetja Kganyago, has said in the past he favours a target of 3%.
After Masondo’s announcement the rand strengthened and government bond yields fell.