Central Banks
Kganyago Argues for Lowering South Africa’s Inflation Goal
- Central bank’s 3% to 6% inflation target in place since 2000
- Kganyago says lowering the target can be done at little cost
Shoppers in a market in the central business district of Pretoria, South Africa.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
South African Reserve Bank Governor Lesetja Kganyago delivered a strong argument for lowering the 3% to 6% inflation target that has guided policymakers for the last 24 years.
“We have an opportunity to achieve permanently lower inflation and therefore permanently lower interest rates,” Kganyago told an audience at the University of Stellenbosch on Thursday. “Executed effectively, a lower target could be achieved at little cost – just as we moved to 4.5% at little cost.”