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The world’s markets are worrying about higher inflation. SA’s are worrying about a lower inflation target. More specifically, they are wondering what exactly Reserve Bank governor Lesetja Kganyago means when he says — as he did recently in interviews with Business Times and the Financial Times — that there is a compelling case to cut the target.

Other countries have cut their targets where SA has not, he said. If SA wants to remain competitive it has to cut its inflation rate to levels closer to those of its competitors...

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