Willcox, Owen2025-07-282025Willcox, Owen. (2025) Debating South Africa's approach to a lower inflation target, Southern Centre for Inequality Studies, University of the Witwatersrandhttps://hdl.handle.net/10539/45719This policy brief argues against lowering of the inflation target. A lower inflation target will worsen South Africa’s fiscal dynamics, leading to deeper and longer fiscal austerity, which will result in lower economic growth and employment. The arguments of the South African Reserve Bank (SARB) for a lower target are cogent but ignore the impact on government debt, and hence the negative impact on the macroeconomy at large.en© 2024 University of the Witwatersrand, Johannesburg. All rights reserved. The copyright in this work vests in the University of the Witwatersrand, Johannesburg. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of University of the Witwatersrand, Johannesburg.InflationSouth African Reserve BankGovernment Debtfiscal austeritySouth Africafiscal dynamicsGDPDebating South Africa's approach to a lower inflation targetUniversity of the Witwatersrand, JohannesburgSDG-10: Reduced inequalitiesSDG-8: Decent work and economic growth