At the time, South Africa was the 13th country to introduce this policy framework. The Governor at the time, Tito Mboweni, was tasked with guiding the SARB through this uncharted territory. Our inflation target, set by the Minister of Finance in consultation with the SARB, is between 3% and 6%.
The adoption of inflation targeting saw a radical change in the way in which the SARB communicated with the public, focusing on transparency through communication, and ensuring that independence and accountability worked hand in hand. The flexibility of the inflation-targeting framework and its anchoring of public expectations about inflation assisted the country to weather the global financial crisis in 2008 and 2009.