This is the main reason why our interest rates haven’t fallen further. We tend to spend a lot of time comparing ourselves to low inflation and low interest rate economies, when we really are not in that particular picture frame. 4  Given this analysis, we decided to make some changes.
We could better achieve permanently lower interest rates if we were clearer about where exactly we want inflation to be, within our range. 4 See also Mnyanda, L. 22 July 2019. ‘Reserve Bank should clarify inflation target’. Business Day. Page 6 of 14  The simplest and most honest option would be to emphasise the middle of our target range, 4.5%, as our goal.