Kganyago explained that structurally lower interest rates, resulting from a reduced inflation target, would not only ease financial strain for borrowers but also support long-term economic expansion.

“And what the scenario shows is that you actually end up with higher growth over the forecast horizon, and higher growth will benefit the entire economy,” said Kganyago. “But a growing economy should also be an economy that creates jobs, which means that we would be making progress in dealing with the job creation challenge. That scenario says that we will have lower interest rates, which means that borrowers will benefit.”

--ChannelAfrica--