Friday July 3, 02:50 PM
S.Africa's inflation targeting to stay - Gordhan
CAPE TOWN, July 3 (Reuters) - South Africa's policy of targeting inflation has helped to stabilise prices and grow the economy and will remain in place, Finance Minister Pravin Gordhan said on Friday.
'Inflation targeting provides a clear nominal anchor for monetary policy and requires the Reserve Bank to be transparent about its goals and actions,' Gordhan said in a written reply to a question in parliament.
'Since inflation targeting was adopted in 2000, both the level and volatility of inflation has declined, while GDP growth has also been stronger and less volatile than under previous monetary policy regimes,' he said.
Inflation targeting has been a source of friction between the ANC government and its trade union and communist allies, who want the policy scrapped.
(Reporting by Wendell Roelf, Writin by Phumza Macanda) Keywords: SAFRICA GORDHAN/
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