South African Central Bank’s CPI Shift Riles Finance Minister

South Africa’s finance minister criticized the central bank for “unilaterally” declaring it would aim for a lower inflation target and said authority to make that call lies with him alone.

Enoch Godongwana’s statement on Friday came in response to a surprise move by the South African Reserve Bank a day earlier, announcing it now prefers inflation to settle at 3%, the bottom of its target band. While the shift pleased financial markets — with the yield on benchmark 2035 government bonds falling to the lowest in more than five years — the National Treasury hasn’t signed off on the move.