Ñî¹óåú´«Ã½ School of Economics and Finance hosts timely discussion on Inflation Targeting in South Africa
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The Ñî¹óåú´«Ã½ School of Economics and Finance hosted a panel of economists and practitioners to discuss the future of inflation targeting in South Africa.
The event was co-hosted by a new Ñî¹óåú´«Ã½ student initiative focused on macroeconomic policy, led by Master’s student McKinnley Mitchell, and brought together leading voices from academia, finance and industry.
Panel participants included:
- Prof Philippe Burger – University of the Free State
- Shannon Bold – Bureau for Economic Research
- Mamokete Lijane – Standard Bank
- Daan Steenkamp – Codera Analytics
- Nhlanhla Nene – Former Minister of Finance and current Chair of Thebe Investment Corporation
The discussion was facilitated by Ñî¹óåú´«Ã½ economist Dr Kenneth Creamer, with opening remarks from Professor Uma Kollamparambil, Head of SEF, and Professor Jason Cohen, Dean of the Faculty of Commerce, Law and Management.
Key Debate: From a 3-6% Range to a 3% Point Target?
Panelists examined whether South Africa should move from its current 3-6% inflation target range to a single 3% target.
A shared sentiment emerged: a lower, more precise target could support lower borrowing costs and better protect households from rising prices. However, experts emphasised that such a shift cannot happen in isolation. It would require:
- Strong coordination with fiscal authorities to avoid disrupting budgeting and public finance;
- Clear and consistent communication with the public to anchor inflation expectations and minimise adjustment costs.
The discussion highlighted the complexity of balancing credibility, growth, and social impact in monetary policy; making it a timely and important conversation for South Africa’s economic future.
Watch the full discussion here: