Wits School of Economics and Finance hosts timely discussion on Inflation Targeting in South Africa
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The Wits 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 Wits 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 Wits 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:
https://www.youtube.com/watch?v=Z5DnpGLWd1M