Inkatha Freedom Party Statement By:
MR NAREND SINGH MP
IFP SPOKESPERSON ON FINANCE      

7 December 2007

Mr Narend Singh MP, IFP spokesperson on Finance today said: 

"The IFP does not agree with yesterday's announcement by the Governor of the Reserve Bank, Mr Tito Mboweni regarding the rise in interest rates, as we believe that an interest rate hike does not sufficiently target all inflationary factors especially fuel prices and food inflation." 

 "In addition, the IFP feels that as a developing country we need to reconsider the Government's inflation target range of 3 - 6%.  We would advise an upward adjustment." 

"The IFP calls on the Government to review the inflation target range because the consistent increases in the repo rate over the past number of months have clearly not had the desired effect to curb inflation."

For further information contact: 

Mr Narend Singh MP 
IFP Spokesperson on Finance 
083 788 5954