Unfortunately, although the animosity towards inflation targeting has declined significantly, almost 15 years after the implementation of the framework, and despite our communication initiatives, the views of some segments of society have not changed much.
For example, following the 25 basis point increase in the repo rate in July, the Cosatu response was one of “bitter disappointment”, laying the blame for low growth at the door of “conservative monetary and fiscal policies”, despite a slightly negative real policy rate and a fiscal deficit of 4.5 per cent of GDP.