# South African Reserve Bank governor, Lesetja Kganyago, says the country has entered a new era of low inflation, which strengthens the likelihood of declining inflation expectations. SARB expects inflation to average 3.4-percent this year and 3.6-percent next year, before moderating to three-percent in 2027. Speaking at the SA Tomorrow Investment Conference 2025, Kganyago said while the country’s sovereign risk premium was mostly a function of fiscal policy, targeting a lower level of inflation signals a more optimistic outlook for the economy.
SARB governor Kganyago says South Africa is entering a low-inflation era