KIM SILBERMAN: Implications of the Bank targeting 3% inflation
There would be pain at first, as interest rates stay higher for longer, but the gain is a lower terminal rate
09 June 2024 - 18:20
Conjecture about lowering SA’s inflation target from its current 4.5% has gained momentum since the publication in February of the National Treasury’s macroeconomic policy review.
It is argued in the review that the goals of inflation targeting have “broadly been achieved … but some adjustments to the framework may be desirable given inflation differentials compared to our peers and trading partners”...
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