Reuters reports that SA Reserve Bank (Sarb) governor Lesetja Kganyago made the case on Wednesday for adopting a consumer inflation "point target" of around 3% or 4% with a margin of error either side, as opposed to a 3% to 6% target range used currently.

Speaking in a virtual address on inflation-targeting at Stellenbosch University, Kganyago said: "A more appropriate target would be a point target of around 3% or 4%, putting us in the same territory as our peers. Given the uncertainties around inflation, it would be useful to bracket the point target with an error range: probably plus or minus 1 percentage point. With the Covid-19 shock, we have seen what it's like to have inflation rates nearer 3% and, with that, low interest rates." SA’s annual consumer inflation picked up to 4.6% in July, close to the midpoint of the bank's target.

• Read the full original of the report in the above regard at Engineering News
• Read too, Kganyago says benefits of lower inflation target would outweigh short-term pain, at BusinessLive (subscriber access only)

Get other news reports at the SA Labour News home page