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Saturday, 19 April 2008

2% anchor for inflation

The SARB regards its primary goal in the South African economic system as " the achievement and maintenance of price stability".

Price stability is a year-on-year increase in the CPI of 0%.

A high degree of price stability is a year-on-year increase in the CPI of 2%.

The SARB has to change its primary goal in the South African economic system to be " the achievement and maintenance of a high degree of price stability of 2%".