13/11/2025
Midlands 104FM I NewsSummary I – 13 November 2025
The South African government has revised the country’s inflation target to 3%, with a 1 percentage point tolerance band, replacing the previous 3–6% range.
Finance Minister Enoch Godongwana announced the change during the Medium-Term Budget Policy Statement in Parliament, saying the new target will be phased in over the next two years.
He said the lower target aims to reduce the cost of living and borrowing, support economic growth, and create jobs. While acknowledging short-term fiscal challenges, the Minister said the long-term benefits—such as lower inflation expectations and interest rates—outweigh the costs.
The move was agreed upon with the Reserve Bank Governor and aligns South Africa with international best practice, helping to lower borrowing costs by reducing the inflation risk premium.
— SAnews.gov.za