IMF: Inflation-targeting the right policy for SA

Inflation-targeting is the right policy for South Africa, the International Monetary Fund (IMF) said on Wednesday.

IMF managing director Dominique Straus-Kahn said the policy, however, had to be used “flexibly”.

“The South African economy has weathered the immediate effects of the global crisis, mainly due to sound macroeconomic policies, its flexible monetary and exchange rate regime, and a well supervised financial system,” he told media in Johannesburg, following his two-day visit to South Africa.

He said during his visit he had had productive discussions with the authorities on the country’s economic outlook and challenges.

Fiscal policy had been appropriately counter-cyclical, striking the proper balance between supporting output and preserving medium-term sustainability, he said.

Straus-Kahn said, however, South Africa continued to face difficulties as unemployment was extremely high.

South Africa’s success had important implications for the rest of Africa.

“As a member of the G20, it has a leadership role to play in advancing prosperity across the continent and making the voice of Africa heard in the international arena.”

Straus-Kahn was on an African tour that began in Kenya. His next stop is Zambia. — Sapa

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories


Already a subscriber? Sign in here


Latest stories

Covid-19 has led to an increase in depression, mental illness...

There has been an unprecedented structural shift in disease patterns, which has highlighted unequal access to healthcare

Can technology help to promote students’ mental health?

New apps and online therapy show promise, but more research is needed to help understand who will benefit from digital interventions

The Battle for the Benin Bronzes reaches melting point

Benin City's looted bronzes are coming home – but the British Museum hasn't received the memo, writes Carlos Amato

Shongweni is to get a green city

The build will include solar power, grey water recycling, rainwater harvesting and a waste-to-energy facility

press releases

Loading latest Press Releases…