This was done by looking through short-term impacts and focusing on second rounds effects, thus resulting in inflation being allowed to be outside the target for longer, but not overreacting with policy, while keeping a close watch on inflation expectations.
5  Rethinking Macroeconomic Policy, Olivier Blanchard, Giovanni Dell’Ariccia and Paolo Mauro, IMF Staff position note, February 12 2010  BIS central bankers’ speeches  3  In August 2008, South Africa’s headline inflation rate peaked at 13.7 per cent, at which time the repo rate had been increased to 12 per cent.