<ul data-eligibleForWebStory="false"><li>The South African Reserve Bank (Sarb) may lower its inflation target to 3% with a possible 1% plus-or-minus tolerance band, down from the current 4.5% goal, at the upcoming policy meeting.</li><li>The Sarb governor Lesetja Kganyago mentioned that a review of the 3% to 6% inflation goal will be finalized soon, leveraging the country's current low price pressures.</li><li>Citigroup pointed out reasons why the central bank might proceed with adjusting the framework, such as low inflation expectations and the potential benefits of aiming for a 3% goal.</li><li>The adjustment to a lower inflation target could have positive impacts on public finances, and with price pressures expected to remain low, a shift now would allow the National Treasury time to incorporate it into the mid-term budget review in October.</li></ul>

South Africa’s central bank could lower CPI goal in July

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