Economists are starting to flag the possibility that South Africa could lower its 3%-6% inflation target to a 3% point target as early as this year’s October mini-budget, based on the strong technical arguments being pushed by the Reserve Bank.

Since 2021, the Bank has been clear that South Africa’s 4.5% inflation target remains high relative to many emerging markets, which mostly have point targets of about 3%. The higher inflation target imposes various costs on the economy and makes it less competitive...

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