We hope to remedy this by anchoring inflation nearer 4.5% – the midpoint of our target range – as we have repeatedly said in MPC statements and in speeches. The poorest South Africans should be among the biggest beneficiaries of that policy. Inequality and macroeconomic policy To conclude, monetary policy affects inequality through several channels.
Low interest rates tend to push up asset prices, helping those who have assets already. Low interest rates also reduce borrowing costs, but mainly for borrowers at the high end of the income spectrum. Interest rates have weak and limited effects on employment, especially for the third of  International Monetary Fund (2018), ‘Annex VIII.