As I have noted earlier, the SARB and National Treasury had originally agreed to lower the target range to 3-5%. With hindsight, by postponing it to some unannounced future date, we made a mistake. We should have announced we would get to 3-5% more slowly, instead of reverting to 36%.
If we reformed the target now, in consultation with National Treasury, we would likely go to either 3% or 4%, with a tolerance band of maybe 1 percentage point on either side. This is where most of our peer emerging markets are already, or where they are heading.