It calls for the central bank to ‘protect the value of the currency in the interest of balanced and sustainable economic growth’, and states that the SARB ‘must perform its functions independently and without fear, favour or prejudice’.10  Central bank independence in the context of the SARB refers, at the minimum, to instrument independence, that is, the SARB has the flexibility to use any and all of the tools at its disposal to achieve the set inflation target range.
The SARB communicates regularly with the public, trade unions, civil society, parliament and representatives of government to explain and discuss economic developments, as well as what informs the monetary policy stance. Through this process, the SARB remains accountable to the South African public. The SARB’s independence, however, allows it to avoid the trap whereby monetary policy is being constrained by short-term political motives.