A lower target, sitting at 3%, would help dampen exchange rate volatility and sovereign risk, reduce the potential for upward drift in the real exchange rate, and materially lower debt service costs, primarily for the now over-indebted public sector.19  18  Offsetting effects occurred in respect to volumes of exports and imports, even as price effects were strongly positive.
19 “Monetary Policy in South Africa: 2007–21”, Patrick Honohan and Athanasios Orphanides, World Institute for Development Economic Research (UNU-WIDER), Working Paper 2022–29  9  Concluding remarks In conclusion, we look forward to further easing in global inflation and falling inflation expectations, in particular in emerging economies where they have ratcheted higher over the past year.