Mboweni slams IMF inflation suggestion

JOHANNESBURG – South Africa’s government and central bank have asked the International Monetary Fund to stop making policy suggestions that sound prescriptive, central bank governor Tito Mboweni said on Friday.

Mboweni said both he and Finance Minister Trevor Manuel had responded the same way to the IMF’s suggestion in an annual report this month that authorities should target the mid-point of the country’s three to six per cent inflation target range. “I’ve told them to please stop this thing, particularly with respect to South Africa.They can’t say these things,” he said in reply to a question from parliament’s finance committee.Mboweni said the IMF had been asked to “avoid anything that would appear to be policy prescriptive for countries which are not borrowing from you”.The annual increase in the country’s CPIX inflation benchmark, which excludes volatile home loan costs, has remained inside the three to six per cent target range for 35 consecutive months.Nampa-Reuters”I’ve told them to please stop this thing, particularly with respect to South Africa.They can’t say these things,” he said in reply to a question from parliament’s finance committee.Mboweni said the IMF had been asked to “avoid anything that would appear to be policy prescriptive for countries which are not borrowing from you”.The annual increase in the country’s CPIX inflation benchmark, which excludes volatile home loan costs, has remained inside the three to six per cent target range for 35 consecutive months.Nampa-Reuters