The second question I would like to tackle is whether emphasising 4.5% is an optimal monetary policy for South Africa? My view is that this is a key macroeconomic accomplishment. We have positioned South Africa to have permanently lower inflation. This is valuable progress. Critics will say we could have cut rates to get higher growth.
But, as I have noted earlier, South Africa’s growth problem is caused mainly by structural  6 Unlike the other countries mentioned, China’s monetary policy approach is not always classified as pure inflation targeting. Nonetheless, the authorities have specified an inflation target of around 3%. Page 9 of 14  factors, like a constrained electricity system as well as policy uncertainty.