ISAAH MHLANGA: The Bank would be right to move to a 3% inflation target
It might be painful for some time, but the long-term benefits make it worthwhile
In a public lecture at the University of Stellenbosch on September 8 SA Reserve Bank governor Lesetja Kganyago revealed that the Bank wants an inflation target of 3%.
I believe the Bank is on a Paul Volcker wicket, and if it implements this natural progression in policy this will go down in history as one of the three policy choices SA got right in the management of the rand, the other two being to end the financial rand system in 1995, and to adopt the inflation targeting framework in 2000. ..