The Reserve Bank governor appears to be convinced by the argument that SA should target a rate of just 3%
“Low inflation is like reliable electricity: good policy means most people don’t have to worry about it. Unfortunately, just as we have load-shedding, so our high and wide inflation target means the currency suffers persistent value-shedding. We would like this to end.”
So said Reserve Bank governor Lesetja Kganyago as he sketched out his argument that SA should embark on a historic monetary policy overhaul and undo the mistakes of the past two decades when the government gave up on lowering the inflation target to 3%-5%...
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