Reserve Bank Governor Lesetja Kganyago emphasised the benefits of a lower inflation goal, saying it could save the government as much as R900-billion over a decade in debt-service costs. “What we are showing by lowering the inflation target is that government will be able to save in debt servicing costs,” Kganyago told an audience at the release of the bank’s semi-annual Monetary Policy Review on Thursday in the capital, Pretoria. “Over a 10 year period, we estimate that to be about R900-billion. To take a straight line over 10 years, it’s about R90-billion a year.”
