Lesetja Kganyago: Overview of the South African economy Address by Mr Lesetja Kganyago, Governor of the South African Reserve Bank, at the 96th annual ordinary general meeting of shareholders, Pretoria, 29 July 2016. * 1.
The language of the new agreement makes clear that inflation should not be persistently outside either end of the band. This is because a sustained breach of the target could affect people’s perceptions of the trend inflation rate. That in itself could create a major inflationary problem.