DOWNWARD REVISION
Lesetja Kganyago supports an inflation target set at 3%
Reserve Bank governor says benefits of lower inflation target would outweigh short-term pain
Reserve Bank governor Lesetja Kganyago has reiterated his call for a shift in SA’s inflation targeting to a specific percentage near the bottom of the current range, even as he acknowledged it may entail short-term costs and needs support from government price setters.
SA’s central bank has nursed the economy through the shock of the Covid-19 outbreak and lockdowns by cutting the benchmark interest rate to the lowest level in about five decades and keeping it there, even as emerging-market peers such as Russia, Brazil and Turkey have increased theirs. That is because SA has comfortably kept inflation within the 3% to 6% target...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.