Finance Minister Trevor Manuel said on Tuesday evening that South Africans were not adequately saving for tomorrow and preferred instead to consume in a US-like manner.
He said households were highly indebted and consuming in a manner that mimicked patterns in the US.
"They live on debt and are highly leveraged. It is not a basis of stability," said Manuel.
"If they are borrowing for consumption then there is something wrong in the equation," he emphasized.
Manuel said inflation targeting was a necessary policy as inflation hit the poor and those relying on a fixed salary the hardest and thus price stability was needed.
'S Africans act like Americans'
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