Kganyago says midpoint target allows for shocks

South Africa’s central bank is seeking to anchor inflation at the midpoint of its target range of 3% to 6% to allow flexibility to deal with price shocks, Reserve Bank Governor Lesetja Kganyago said. While risks to global economic growth are “without a doubt” a dominant concern and the domestic inflation outlook is largely “contained,” it’s important to bring inflation expectations closer to 4.5%, he said in an interview with Bloomberg TV in Davos.