Time for cool heads on inflation
SA stands to gain from lowering the inflation target in line with its emerging-market peers, but government inefficiency and populist resistance will first have to be overcome
23 September 2021 - 05:00
Reserve Bank governor Lesetja Kganyago’s bold call for a lowering of the inflation target to 3% comes at a vulnerable stage in SA’s recovery, just as inflation is picking up and at the anticipated start of an interest-rate-hiking cycle.
In a recent public lecture at Stellenbosch University, Kganyago conceded that though the timing is "delicate", he believes that "if SA wants to keep interest rates low, the most important thing we can do is to lower the inflation target"...
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