The SARB is proposing to shift inflation targets from the well-known 3 – 6% band to a new 3%-point target. This episode explores how this significant change could affect ordinary South Africans.
In what can be described as quite a radical approach to SA’s inflation targeting, Head of Multi-Assets, Chris Eddy, discusses what it could mean for the economy with Michael Avery at Classic Business.
Points raised in this discussion
- Developed market economies have a 2% target.
- Emerging market economies have a target of 3%.
- SARB’s new target aims to bring greater parity compared to peers.
- A lower inflation point might anchor inflation expectations lower.