Reserve Bank dangles R870bn carrot in 3% inflation target push
The Bank argues that lowering the inflation target would lower the cost of servicing government debt
03 June 2025 - 05:00
The Reserve Bank has made its strongest case yet for a sweeping monetary policy shift, saying a lower inflation target of 3% could yield nearly R900bn in debt-servicing savings costs over the next decade.
The estimates — contained in modelling by the Bank’s in-house economists — provide a serious incentive for the National Treasury to show tangible support to lower the target. If enacted, the proposal would mark the most substantial monetary policy rethink in 25 years...
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