Citi Says South Africa Central Bank Could Lower CPI Goal in July

The South African Reserve Bank could lower its inflation target as soon as its policy meeting at the end of this month, according to Citigroup Inc.

“We recently wrote that the SARB would likely drop the inflation target in the third quarter” to 3% — with a possible 1% plus-or-minus tolerance band — from its current 4.5% goal, said Gina Schoeman, the bank’s economist for South Africa. “We believe there is a reasonable chance” of this happening at the upcoming meeting.