INFLATION TARGETING
Reserve Bank set to aim for a lower range
As inflation continues to fall well within the 3%-6% target range, many economists say the Reserve Bank is likely to ease policy rates further
A change in policy to lower the inflation target range may be on the cards as inflation continues to ease. According to Statistics SA, production prices dropped to 3.6% year on year in July, from 4% in June. This comes after consumer prices fell below the 5% mark last week for the first time since November 2015, easing to 4.6% year on year in July, from 5.1% in June. As inflation continues to fall well within the 3%-6% target range, many economists said the Reserve Bank was likely to ease policy rates further at the next monetary policy committee meeting in September after the surprise 25-basis-point reprieve to 6.75% for the first time in five years at the previous policy committee meeting in July.
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