July 6, 2017 / 7:47 AM / 3 months ago

South Africa's central bank defends inflation targeting

PRETORIA, July 6 (Reuters) - Inflation targeting has its flaws but is “the least bad option” for South Africa as monetary policy should be used to create price stability, central bank deputy governor Kuben Naidoo said on Thursday.

“Inflation targeting has its flaws but I think it’s the least bad option for South Africa in the present environment given our economic circumstances,” Naidoo told a public lecture.

South Africa’s Deputy Finance Minister Sfiso Buthelezi said last week there was need to debate whether the central bank’s inflation targeting range of 3 to 6 percent was still relevant now.

Reporting by Olivia Kumwenda-Mtambo; Editing by Joe Brock

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