Reserve Bank says South Africa is ready for shocks

• South Africa's 3% inflation target can withstand a range of economic shocks
• The study found that an almost 40% oil-price shock lasting three quarters would add an average of 0.87 percentage points to inflation in the first year
• The study attributes the outcomes to more forward-looking inflation expectations, particularly since the South African Reserve Bank adopted its preferred goal of 4.5% in mid-2017