Leap of faith: Is it time for a 3% inflation target?
After four years of talking about lowering the inflation target, the Reserve Bank is becoming increasingly strident, arguing that now is the time to lock in lower inflation at little cost. But not everyone is convinced
03 July 2025 - 05:00
The Reserve Bank’s monetary policy committee (MPC) took the extraordinary step at its May meeting of publishing a 3% inflation target scenario alongside its usual baseline forecast and declaring it “more attractive” than the option of sticking with the current 4.5% inflation target.
This bold move has been widely interpreted as a deliberate signal to markets, policymakers and society to prepare for a pivotal recalibration of South Africa’s monetary policy framework...
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