Cartoon of the day: 13 November 2025
Godongwana announced a new inflation target, but said it will come with costs.
Finance Minister Enoch Godongwana delivered his Medium-Term Budget Policy Statement (MTBPS) on Wednesday.
He said while revenue performance for 2025-26 was better than expected, the amounts projected for the next two years will be lower than initially estimated.
He also announced a new inflation target of 3%.
“Over time, the lower target will decrease inflation expectations and inflation, creating room for lower interest rates. This supports household spending and business investment, boosting economic growth and job creation,” he said.
He, however, warned that this will lead to lower nominal gross domestic product (GDP) and revenue growth.
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