CAPE TOWN (Reuters) - South African Finance Minister Pravin Gordhan defended the government's inflation-targeting policy on Monday, saying it gave investors confidence and the central bank options in times of crisis.
Labour unions have repeatedly urged the government to scrap or change its policy of targeting an inflation rate of between 3 and 6 percent, saying strict adherence had led to higher interest rates that hurt the poor.
"Our inflation-targeting framework has proven itself in the past as a valuable signal for credible policy, which provides investors with confidence in times of crisis and flexibility for the Reserve Bank to respond appropriately during a crisis," Gordhan said in a written statement to parliament.
