Inflation targeting in South Africa
- Wits University
Former Minister of Finance Nhlanhla Nene discusses whether the time is right to shift the level from a range of 3% to 6%.
The School of Economics and Finance (SEF) hosted a panel discussion on current debates about South Africa’s inflation targeting policy.
Held on 1 October 2025, the event was co-hosted by Wits students focussing on macroeconomic policy matters led by McKinnley Mitchell, a master economics candidate.
The panel of prominent economists, bankers and practitioners included Philippe Burger from the University of the Free State, Shannon Bold from the Bureau for Economic Research, Mamokete Lijane of Standard Bank, Daan Steenkamp of Codera Analytics, and Nhlanhla Nene, former South African Finance Minister and current Chair of Thebe Investment Corporation. The discussion was facilitated by Wits economist Dr Kenneth Creamer.
The panel debated whether it's time to shift the level of South Africa’s inflation target from a range of 3% to 6% point target.
Panellists tended to agree the 3% target would be desirable for facilitating lower borrowing costs and protecting ordinary South African’s from the effects of inflation, but it was argued that the introduction of a lower target would need to be coordinated carefully with government’s fiscal authorities so as not to undermine budgeting and fiscal planning.
It was also contended that a new inflation target would need to be well communicated with South Africans so as to lower inflation expectations and thereby have the most positive impact with the least adjustment costs going forward.