The Organisation for Economic Co-operation and Development (OECD), a group of developed countries, has said it backs the plan by the South African Reserve Bank (SARB) to lower South Africa’s inflation target to 3%.
This was revealed in the OECD’s 2025 recommendation on the South African economy.
It said that a lower target inflation rate would help support economic growth.
Now the SARB has a target band of between 3% and 6%. This target has not changed since it was first implemented in 2000.
Currently annual inflation is just below 3%.
Ratings agency, S&P, has also backed the move.
[Image: Markus Winkler on Unsplash]