Reserve Bank Governor Lesetja Kganyago says a lower inflation target would ensure South Africans enjoy a lower inflation experience.
In a lecture to students at Stellenbosch University on Thursday, he says a lower inflation target would allow the central bank to deliver better price stability to South Africans.
Kganyago stresses that there is a desire to move to a lower target in line with South Africas peers.
We have a relatively high inflation rate. We often speak as if this is a structural, inevitable thing, and not a policy choice. But the fact is, we could have a lower inflation target, like almost all our peers, and with it, lower inflation. If we achieved this, I think South Africans would enjoy the lower inflation experience and will look back at the era of inflation generally over 5 as a period of great inconvenience and difficulty. People prefer price stability. We cannot honestly claim that we are delivering that. We can do better.
