Forward guidance that commits to refrain from lifting the policy rate from its lower bound until full employment and 2 percent inflation are achieved is vital to ensure achievement of our dual-mandate goals with compressed conventional policy space.
Similarly, we do not try to explicitly lean against rand strength, although we did take advantage of such conditions in 2009–2011 to continue with our policy of accumulating international reserves. However, the view that we prefer a strong rand to a weak rand is not well-founded.