The advent of democracy in 1994 saw increased focus on price stability as a necessary condition for growth and development, which is why the drafters of the Constitution enshrined, in the country’s fundamental law, the SARB’s mandate of achieving and maintaining price stability in the interest of balanced and sustainable economic growth, and its independence.
For the remainder of the 1990s, in contrast to the previous two decades, the SARB’s policy of positive real interest rates brought inflation sustainably within single-digit territory. In 2000, the introduction of inflation targeting helped to clarify the mandate of the SARB, providing a policy anchor and introducing greater transparency in policy decisions. This policy has brought clear results.