However, this does not mean that we target the rand in any way: the rand is but one of a number of determinants of inflation acting simultaneously, sometimes in different directions and with varying intensities. Monetary policy actions do not attempt to influence the exchange rate but rather focus on the overall inflation outlook.
A complicating issue recently has been the fact that the traditional pass-through relationship from the exchange rate appears to be lower than during previous episodes of rand weakness. Time will tell whether or not this is a cyclical phenomenon which may be reversed at some stage, or whether it is of a more structural nature.