South Africa's Reserve Bank is seeing tangible results from its fresh 3% inflation target approach. The new guidance isn't just sitting on paper—it's actively reshaping how businesses and consumers think about prices ahead. When a central bank commits to a clear, credible target, market psychology shifts. Lower inflation expectations can become self-fulfilling, as companies moderate pricing power and wage demands ease up. This kind of anchored expectation management is textbook monetary policy, but execution matters enormously. The rand and broader economy are already responding to this clearer forward guidance.