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...