IMF says Sarb should consider lowering inflation target
Lower inflation could bring various benefits, but only “when circumstances allow”, say staff
The South African Reserve Bank (Sarb) should consider lowering its inflation target range, “when circumstances allow”, the International Monetary Fund said on February 11.
Fund staff make the suggestion in their latest Article IV report on the South African economy. Commenting on the report, IMF executive directors agreed there was “merit” in the proposal.
The Sarb currently targets 3–6% inflation, and the central bank is gradually tightening policy to resist rising inflation. IMF projections
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